What is Super-Majority Vote?
Super-Majority Vote is the threshold required to approve key decisions in CIRP (66% of CoC for resolution plans, withdrawal etc.) and under ICA-based restructurings (75% by value of lenders). It is designed to bind dissenting lenders to a credible plan.
| Meaning | Super-Majority Vote is the threshold required to approve key decisions in CIRP (66% of CoC for resolution plans, withdrawal etc.) and under ICA-based restructurings (75% by value of lenders). It is designed to bind dissenting lenders to a credible plan. |
|---|---|
| Category | Legal & Insolvency |
| Related Laws | IBC 2016, Sections 30 and 33; RBI Prudential Framework 2019 |
| Who Uses It | CoC, lenders |
| Why It Matters | Prevents holdouts from blocking viable plans. |
Super-Majority Vote explained in plain English
A practitioner's view written for borrowers and advisors — not a textbook definition.
Super-Majority Vote is the threshold required to approve key decisions in CIRP (66% of CoC for resolution plans, withdrawal etc.) and under ICA-based restructurings (75% by value of lenders). It is designed to bind dissenting lenders to a credible plan.
In practice, Super-Majority Vote is used most often by coc, lenders. Each of them sees the term from a slightly different angle: borrowers care about protection and outcomes, lenders care about classification and recovery, regulators care about consistency and disclosure.
The legal anchor for Super-Majority Vote is IBC 2016, Sections 30 and 33; RBI Prudential Framework 2019. RBI master directions, the SARFAESI Act 2002, the RDB Act 1993 and the IBC 2016 commonly interplay, depending on the loan size, security and stage of stress.
Why does it matter? Prevents holdouts from blocking viable plans. For a stressed borrower, getting this concept right early often saves several months of penal interest, legal cost and credit-score damage.
A real example: Resolution plan approved by 78% of CoC binds all financial creditors. The mechanics may look complex, but the underlying logic — the bank wants closure, the borrower wants a fair outcome — is straightforward once the right framework is in place.
If you are facing a situation involving Super-Majority Vote, the safest first step is a structured case review with a senior ex-banker who has handled comparable matters across banks and ARCs in India.
Where you'll encounter Super-Majority Vote
Whenever a loan moves from "Standard" to "stressed", Super-Majority Vote is one of the words that starts appearing in notices, bank emails and lawyers' opinions.
Sanctioning committees, recovery teams and risk officers use Super-Majority Vote to classify accounts, decide provisioning and approve resolution paths.
Super-Majority Vote appears in pleadings, securitisation applications, OAs, Section 7/9 petitions and SARFAESI writs as part of the dispute record.
When stressed loans are sold to ARCs or special-situations investors, Super-Majority Vote is used in term sheets, assignment agreements and due-diligence reports.