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2019 (9) TMI 1452 - Tri - Insolvency and BankruptcyDirection to Resolution Professional/Respondent to issue a copy of the Resolution Plan so approved by the CoC - It is submitted that the Applicant has no right in the capacity of Operational Creditor to seek a copy of the Resolution Plan since the debt of the Applicant is less than ten percent - HELD THAT - It is clearly provided in Sec. 24(3)(c) of the Code that only such Operational Creditors or their representative can take part in the CoC meeting whose aggregate dues are not less than 10% of the total debt of the Corporate Debtor. The provisions of Sec. 24 when read with provisions of Sec. 30(5) lead us to unescapable conclusion that while potential resolution applicant, members of ex-Board of Directors and Operational Creditors having not less than 10% of total debt of the Corporate debtor can attend the meeting while a potential Resolution Plan is considered by CoC, it does not imply that a potential Resolution Plan should be handed over to such members of ex-Board of Directors and Operational Creditors or even other Resolution Applicants. This Adjudicating Authority finds that the claim of the Applicant as collated and noticed by the resolution professional is less than 10% of the total debts of the Corporate Debtor and thus the case cited by the learned Counsel for the RP is squarely applicable in the present case - This Adjudicating Authority is of the view that the Applicant is not entitled for the Copy of the Resolution Plan. Application disposed off.
Issues:
1. Request for direction to provide a copy of the Resolution Plan approved by the CoC to the Applicant. 2. Concerns regarding the rights of the Applicant as an operator of the Hotel under an independent contract. 3. Applicant's status as an Operational Creditor and entitlement to a copy of the Resolution Plan. 4. Interpretation of provisions regarding Operational Creditors' rights to participate in CoC meetings and access to Resolution Plan. 5. Determination of whether the Applicant qualifies as an Operational Creditor with dues not less than 10% of the total debt. Analysis: Issue 1: The Applicant sought a direction for the Resolution Professional to provide a copy of the approved Resolution Plan. The CoC had approved a Resolution Plan, and the Applicant filed an application to ensure its rights were protected. Issue 2: The Applicant, as an operator of the Hotel under a contract, raised concerns about potential interference with its rights by the Resolution Plan, leading to the request for a copy of the Resolution Plan. Issue 3: The Applicant, besides being the Hotel operator, was categorized as an Operational Creditor and filed an application to receive a copy of the Resolution Plan to safeguard its interests. Issue 4: The Resolution Professional argued that only Operational Creditors with dues not less than 10% of the total debt were entitled to a copy of the Resolution Plan, citing legal precedents emphasizing the rights of Operational Creditors in CoC meetings. Issue 5: The Adjudicating Authority analyzed the Applicant's claim as an Operational Creditor and found that its dues were less than 10% of the total debts of the Corporate Debtor. Consequently, the Applicant was deemed ineligible to receive the Resolution Plan based on the legal provisions governing Operational Creditors' participation. In conclusion, the Adjudicating Authority disposed of the application, stating that the Applicant did not meet the criteria to receive a copy of the Resolution Plan due to its status as an Operational Creditor with dues below the required threshold.
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