Sharing of Information with Non-CoC Member/Other

If Applicants are not the members of CoC, they are not entitled to get a copy of the Resolution Plan – Mr. Suresh Kumar Agarwal Vs. Pankaj Kumar Tibrewal, RP – NCLT Kolkata Bench

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If Applicants are not the members of CoC, they are not entitled to get a copy of the Resolution Plan – Mr. Suresh Kumar Agarwal Vs. Pankaj Kumar Tibrewal, RP – NCLT Kolkata Bench Read Post »

A Non-Member of the CoC will not be entitled to get a copy of the Resolution Plan – Makesworth Industries Ltd. Vs. Pankaj Kumar Tibrewal, RP of Incab Industries Ltd. – NCLT Kolkata Bench

The Hon’ble NCLT Kolkata Bench referring judgment in Jet Airways (India) Ltd. (2022) ibclaw.in 66 NCLAT held that the applicant is not a member of the CoC and thus, he will not be entitled to get a copy of the resolution plan.

A Non-Member of the CoC will not be entitled to get a copy of the Resolution Plan – Makesworth Industries Ltd. Vs. Pankaj Kumar Tibrewal, RP of Incab Industries Ltd. – NCLT Kolkata Bench Read Post »

Operational Creditor being a participant in the meeting of the committee of creditors (CoC) has no right to seek a copy of the Information Memorandum(IM) – Vinay Kumar Singhal RP for PG Advertising Pvt. Ltd. Vs. Mahesh Bajaj – NCLAT New Delhi

The issue involved in this case is as to whether copy of information memorandum can be ordered to be given to the Respondent (Operational Creditor) who is merely a participant in the CoC and not a member?

Hon’ble NCLAT held that:
(i) There is no definition of member provided in the Code or the Regulations which has been repeatedly used in the Code as well as Regulations.
(ii) The Code and Regulations are totally silent about the supply of the information memorandum to the participant, it has to be inferred that the legislature has made a provision for providing a copy of the information memorandum to the member of the CoC and the Resolution Applicant but not to the participant of the meeting of the CoC
(iii) The Operational Creditor being a participant in the meeting of the CoC has no right to seek a copy of the information memorandum.

Operational Creditor being a participant in the meeting of the committee of creditors (CoC) has no right to seek a copy of the Information Memorandum(IM) – Vinay Kumar Singhal RP for PG Advertising Pvt. Ltd. Vs. Mahesh Bajaj – NCLAT New Delhi Read Post »

Can a single person CoC approve Resolution Plan? – Jaykay Enterprises Ltd. Vs. National Oil Company Ltd. – NCLT Kolkata Bench

In this important judgment, NCLT Kolkata Bench held that:

(i) The right regarding the land has not been defined, and it is not under our jurisdiction to decide upon the matter.
(ii) The Resolution Professional is in no fault at not providing the information provided in the Information Memorandum to the application as the Applicant is not a member of the Committee of Creditors or a prospective Resolution Applicant, hence it is not entitled to the Information Memorandum.
(iii) The word “Committee” has not been defined in the Part 1 or Part 2 of the Code which deals with Insolvency Resolution and Liquidation for Corporate Persons.
(iv) There can be no meeting when a single person represents CoC (since other persons who attended are only invitees in this case and they don’t form part of CoC) and consequently, “meeting” cannot been held as contemplated under Section 24 of the Code.
(v) There can be no two view that stake holders in a CIRP process is not restricted only to financial and operational creditors.
(vi) A decision to approve the resolution plan by the CoC should be in a validly convened and conducted CoC meeting.
(vii) The resolution plan is sent back to the CoC.
(viii) Once the Resolution Plan is approved by the Adjudicating Authority, then it will no more be a confidential document.
(ix) The Workers’ Union have no locus standi to question the assignment of a debt by Bank.

Can a single person CoC approve Resolution Plan? – Jaykay Enterprises Ltd. Vs. National Oil Company Ltd. – NCLT Kolkata Bench Read Post »

Section 53 of IBC does not treat the related party as a different class – Hari Vittal Mission Vs. Ravi Sethia, RP of Suasth Health Care Foundation – NCLT Kolkata Bench

NCLT Kolkata Bench held that:
(i) The IBC treats related parties as a separate category for specified purpose so that they are excluded from the CoC and are as such not able to impede and interfere with the resolution process. (Section 21) and are disqualified from being resolution Applicants [Section 29(A)].
(ii) However, there is nothing to show that Section 53 treats them as a different class and excludes them altogether from the ambit of its reach.
(iii) None of the provisions whether its Regulation 38(1-A) (supra) or the Section 30(2) of IBC specifically negates the claim of a related party financial creditor who is not allowed a place in the CoC and is hence not allowed to vote.

Section 53 of IBC does not treat the related party as a different class – Hari Vittal Mission Vs. Ravi Sethia, RP of Suasth Health Care Foundation – NCLT Kolkata Bench Read Post »

NCLT approves Consolidated Resolution Plan of Rs. 14,867.50 crores submitted by NARCL in group insolvency of SREI Equipment Finance Ltd. and SREI Infrastructure Finance Ltd., FSP – Rajneesh Sharma, Administrator of SREI Equipment Finance Ltd. and SREI Infrastructure Finance Ltd. Vs. National Asset Reconstruction Company Ltd. (NARCL) – NCLT Kolkata Bench

On 11.08.2023, NCLT Kolkata Bench has approved the Resolution Plan of National Asset Reconstruction Company Ltd. (NARCL) in consolidated CIRP of SREI Equipment Finance Ltd. and SREI Infrastructure Finance Ltd.
NARCL is a government entity, has been incorporated on 07.07.2021 with majority stake held by Public Sector Banks and balance by Private Banks with Canara Bank being the Sponsor Bank. NARCL is registered with the Reserved Bank of India as an Asset Reconstruction Company under SARFAESI Act, 2002.
NARCL and IDRCL will infuse funds into the Corporate Debtors and other funds towards Assignment Payments, and provide for Corporate Debtors to undertake repayment obligations in the manner set out in this Resolution Plan, aggregating to INR 14,867.50 crores, which amount shall be utilized for funding payments proposed to be made to the stakeholders of the Corporate Debtors, subject to the terms of this Resolution Plan.

NCLT approves Consolidated Resolution Plan of Rs. 14,867.50 crores submitted by NARCL in group insolvency of SREI Equipment Finance Ltd. and SREI Infrastructure Finance Ltd., FSP – Rajneesh Sharma, Administrator of SREI Equipment Finance Ltd. and SREI Infrastructure Finance Ltd. Vs. National Asset Reconstruction Company Ltd. (NARCL) – NCLT Kolkata Bench Read Post »

Whether Resolution Professional is under legal obligation to inform the fair, liquidation value of the Corporate Debtor to the Appellant/Operational Creditor, who is not a member of CoC? – Chhattisgarh State Power Distribution Company Ltd. (CSPDCL) Vs. Salasar Steel and Power Ltd. – NCLAT New Delhi

The points need to be answered in this appeal are as follows:

(i) Whether the CoC and Adjudicating Authority discriminated the Operational Creditors from Financial Creditor while approving the Resolution plan making the Appellant to loss 100% of its claim, if so, the order is liable to be set aside.

(ii) Whether the Resolution Professional is under legal obligation to inform the fair, liquidation value of the Corporate Debtor to the Appellant, who is not a member of CoC?

(iii) Whether the alleged failure to appoint a registered valuer for valuing the Corporate Debtor to fix, fair and liquidation value is an legality in the order passed by the Adjudicating Authority.

Whether Resolution Professional is under legal obligation to inform the fair, liquidation value of the Corporate Debtor to the Appellant/Operational Creditor, who is not a member of CoC? – Chhattisgarh State Power Distribution Company Ltd. (CSPDCL) Vs. Salasar Steel and Power Ltd. – NCLAT New Delhi Read Post »

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