The court docket was deciding an attraction by the Securities and Trade Board of India (Sebi) in search of a keep on voting by collectors as a result of it needed all bond holders to take part in such votes, opposite to the debenture belief deed (DTD) and central financial institution pointers that anticipate solely 75% of the bondholders to vote.
A 3-judge bench headed by justice DY Chandrachud, whereas observing that Sebi norms took priority over central financial institution pointers, nonetheless gave a go-ahead to the plan citing delays if voting known as afresh.
“The totally different voting mechanism proposed beneath the SEBI round will additional delay the decision course of and doubtlessly disrupt the efforts undertaken by the stakeholders, together with the retail debenture holders. Such unscrambling of the decision course of is not going to solely show time-consuming, however may adversely have an effect on the agreed realized positive aspects to the retail debenture holders, who’ve already consented to the negotiated settlement earlier than the Excessive Courtroom,” the apex court docket mentioned.
