NCLT dismissed an application by ex-directors of Shree Vardhman Buildprop seeking removal of financial creditors Kautilya Real Estate Fund and Kautilya Finance BV from the Committee of Creditors.
The applicants argued the creditors exercised controlling power through escrow accounts and reserved matter approvals, making them related parties under IBC.
The tribunal found the contractual rights were standard lender protections and did not constitute management control, upholding the CoC's composition.