2019 (9) TMI 1397 - AT - Insolvency and Bankruptcy

Direction to the Resolution Professional to provide financial details of the Corporate Debtor with respect to the hotel operation and necessary details with regard to the valuation report - HELD THAT - In view of the provisions of the I B Code , it is expected that as far as the facts have been noticed by the Committee of Creditors , if no objection is there by the Appellant, he may bring the same to the notice of the Adjudicating Authority who in its turn can check the financial details of the Corporate Debtor in respect of the hotel operations and valuation report. Appeal disposed off.

Summary

Issues:
- Application under Section 60(5) of the 'I&B Code' seeking financial details of the 'Corporate Debtor' for valuation purposes.
- Dismissal of the application by the Adjudicating Authority.
- Dispute regarding property valuation between the Appellant/Promoter and the 'resolution plan'.
- Lack of cooperation by the Promoters with the Insolvency Resolution Professional causing delays.

Analysis:
The judgment revolves around an application filed under Section 60(5) of the 'I&B Code' by the Appellant/Promoter, seeking financial details of the 'Corporate Debtor' related to hotel operations and the valuation report. The Adjudicating Authority dismissed the application, prompting the appeal. The Appellant argued that the valuation of the property was significantly different in the 'resolution plan' compared to their estimate. However, since the 'resolution plan' had already been provided to the Appellant, the Tribunal declined to interfere with the impugned order.

The Tribunal highlighted that the 'Information Memorandum' prepared by the Interim Resolution Professional contained all necessary details, including financial information of the 'Corporate Debtor'. The Appellant had the opportunity to review this document, which was publicly available. The record did not indicate that the Appellant approached the Interim Resolution Professional for the information before filing the application under Section 60(5). Moreover, it was noted that the Promoters' lack of cooperation with the Insolvency Resolution Professional had caused delays in the process, and any resulting infirmities could be attributed to the Promoters themselves.

In line with the provisions of the 'I&B Code', the Tribunal emphasized the importance of the Committee of Creditors reviewing facts and bringing any objections to the Adjudicating Authority's attention. If the Appellant had concerns regarding the financial details of the 'Corporate Debtor', they were advised to raise these through the appropriate channels. Ultimately, the appeal was disposed of with the observations provided, reinforcing the need for cooperation and adherence to the insolvency resolution process.