Sharing of Information with Shareholders

The scheme of IBC does not indicate that all information collected by Resolution Professional has to be shared with Shareholders, Adjudicating Authority is fully empowered to issue any direction to Resolution Professional or any other party to give any information or evidence – Dauphin Cables Pvt. Ltd. Vs. Mr. Praveen Bansal, RP Abloom Infotech Pvt. Ltd. – NCLAT New Delhi

Hon’ble NCLAT held that:
(i) There is statutory requirement that information shall not be shared with third party.
(ii) The scheme of IBC thus does not indicate that all information collected by the Resolution Professional has to be shared with Shareholders who asks for the information.
(iii) Under the NCLT Rules, 2016, the Adjudicating Authority under Rule 43 is empowered to call for any information or evidence. The Adjudicating Authority is fully empowered to issue any direction to Resolution Professional or any other party to give any information or evidence.

The scheme of IBC does not indicate that all information collected by Resolution Professional has to be shared with Shareholders, Adjudicating Authority is fully empowered to issue any direction to Resolution Professional or any other party to give any information or evidence – Dauphin Cables Pvt. Ltd. Vs. Mr. Praveen Bansal, RP Abloom Infotech Pvt. Ltd. – NCLAT New Delhi Read Post »

Whether under the provisions of the Code, the shareholders are entitled to get copy of resolution plan, copy of minutes of CoC meeting and copy of application for approval of resolution plan? – Malay Mahanti & Ors. Vs. Pinakin Shah& Ors. – NCLT Ahmedabad Bench

The Adjudicating Authority held that under the Code only the members of CoC, suspended board of directors and operational creditors whose aggregate dues are more than ten per cent, of the debt are entitled to participate in CoC meeting and have access to copies of all documents relevant to the matters to be discussed and the issues to be voted upon at the meeting. Further Regulation 24 of CIRP Regulation authorises Resolution Professional to circulate minutes of meeting only to participants. Thus, we find no provision under the Code which entitle shareholders of the Corporate Debtor to have a copy of the minutes of CoC meeting or copy of resolution plan or access to any other confidential document with regard to corporate insolvency resolution process of the Corporate Debtor.

Whether under the provisions of the Code, the shareholders are entitled to get copy of resolution plan, copy of minutes of CoC meeting and copy of application for approval of resolution plan? – Malay Mahanti & Ors. Vs. Pinakin Shah& Ors. – NCLT Ahmedabad Bench Read Post »

The Resolution Plan even though it is not a confidential document after its approval, cannot be made available to each and to anyone who has no genuine claim or interest in the process – Association of aggrieved Workmen of Jet Airways (India) Ltd. Vs. Jet Airways (India) Ltd. – NCLAT New Delhi

NCLAT held that the provision of Section 61, sub-section (3) reaffirms our view that after approval of the Resolution Plan, Resolution Plan does not remain a confidential document, so as to deny its perusal to a claimant, who is aggrieved by the Plan and has come up on the Appeal. We, thus, are of the view that Resolution Plan after its approval by the Adjudicating Authority is no more a confidential document, so as to deny access to even a claimant. It is true that the Resolution Plan even though it is not a confidential document after its approval, cannot be made available to each and to anyone who has no genuine claim or interest in the process. On various grounds the access to Resolution Plan even if it is not a confidential document, after approval can be denied in proper and appropriate cases.

The Resolution Plan even though it is not a confidential document after its approval, cannot be made available to each and to anyone who has no genuine claim or interest in the process – Association of aggrieved Workmen of Jet Airways (India) Ltd. Vs. Jet Airways (India) Ltd. – NCLAT New Delhi Read Post »

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