In the case of Capri Global Capital Limited Vs. Value Infracon India Pvt. Ltd.(Through its Resolution Professional Mr. Sanjay Kumar Singh) & Anr.( Company Appeal (AT) (Insolvency) No. 29 of 2019) the main issue before the NCLAT was whether the financial creditor can claim voting rights against the total loan amount of the contract or individual amount with respect to the corporate debtor.

The appeal was against the order of NCLT (New Delhi) which directed the Resolution Professional to reallocate the voting share of the Appellant i.e. Capri Global Capital Limited. The order of the NCLT came after two petitions under Section 7 were filed against the other Co-borrowers. The mortgage by the three companies with the Appellant were for different amounts and the NCLT ordered to alter the voting share with respect to that.

The facts of the case were that the Appellant entered into a loan agreement with the Corporate Debtor, Value Infrabuild Pvt Ltd. and Value Infratech India Pvt. Ltd. for which all three were jointly and severally liable. The claim of the total amount by the Appellant was accepted till 5^th meeting of the Committee of Creditors (CoC) but was drastically reduced due to the NCLT order which also changed the voting share of the Appellant. The amount was disbursed by the Appellant separately in the name of the three borrowers without affecting their liability.

The liability of the Corporate Debtor cannot be joined with other borrowers as they are not the corporate debtor in this case. The ‘Corporate Debtor’- (‘Value Infracon India Pvt. Ltd.’) facing separately triggered application under Section 7, the Appellant cannot claim the dues which is payable by other Co-borrowers, the other ‘Corporate Debtor’ in the ‘Resolution Process’ against the present ‘Corporate Debtor’.[1]

As per the bank accounts, it is clear that the amount was disbursed separately to the borrowers and the same cannot be joined under the liability of the Corporate Debtor. The total amount cannot be taken as the other parties are not Corporate Debtor in this case, the amount has to be claimed in the insolvency proceedings against them.

[1] Company Appeal (AT) (Insolvency) No. 29 of 2019