The Committee of Creditors (CoC) met both sides on February 20, where each representative demanded priority, sources told the paper.
Claims worth Rs 86,374 crore are admitted by the Reserve Bank of India appointed administrator R Subramaniakumar. Of these, Rs 5,207 crore is from over 66,000 depositors and Rs 81,140 crore from banks and bondholders. The latter is being represented by Catalyst Trusteeship (CTL).
The FD holders’ representative posited that depositors, many of them senior citizens, are seeking repayments of mature and premature withdrawals for medical emergencies, and should thus be first priority, one source said, adding that no creditor can be repaid during moratorium under the Insolvency & Bankruptcy Code (IBC).
CTL argued that there should be no distinction between FD holders or bondholders as they also face difficulties and consist of small investors and that any exemption should apply to both, the source added.
Deposit holders face a challenge in the absence of security for FDs, besides a small 6 percent voting right in the CoC, which means their influence on decisions would be minimal. They approached the Supreme Court which has directed them to the National Company Law Tribunal (NCLT).The CoC has also refused preferential treatment to FD holders, saying it is not legally tenable. The issue, however, had to be taken up while deciding on approval for the specific resolution plan.