When Suspended Management of Corporate Debtor is also a Resolution Applicant, no copy of Resolution Plan of other Prospective Resolution Applicants (PRAs) will be shared in advance with the Suspended Management | CIRP Regulation 39(1A) does not prohibit CoC from negotiating with Resolution Applicants or to further increase value | CoC is the best judge to decide on how the evaluation matrix contained in the RFRP can be applied – Yashdeep Sharma Vs. Tara Chand Meenia, RP and Ors. – NCLAT New Delhi

Hon’ble NCLAT held that: (i) Regulation 39(1A) does not prohibit CoC from negotiating with Resolution Applicants or asking Resolution Applicants to further increase the Plan value. (ii) When it is an admitted fact that the Appellant was also a competing Resolution Applicant, no copy of the resolution plan of other PRAs could have been shared in advance with the Appellant as it would have triggered conflict of interest. (iii) The evaluation matrix and Process Document are documents which have been issued by the CoC and the CoC is the best judge to interpret its own documents and apply it for evaluation of the plan of the Resolution Applicants.

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If any Public depositor applies showing due of the debt claiming itself as operational creditor and the Resolution Professional or the Tribunal do not accept the claim on the ground that they are not financial creditor, we allow the appellant to raise the question before the Tribunal and if any adverse decision is given by the Tribunal, it will be open to the appellant to raise the issue before NCLAT- Hind Motors India Ltd. Vs. Adjudicating Authority NCLT, Chandigarh – NCLAT New Delhi

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