2021 (1) TMI 1247 - AT - Insolvency and Bankruptcy

Seeking direction to Corporate to provide information about the required number of Allottees - directing maintenance of status quo with respect to pending applications - HELD THAT - The impugned order does not adjudicate upon any right in regard to triggering of Corporate Insolvency Resolution Process. By merely directing the Corporate Debtor to provide information to the Respondent Allottee to meet the threshold criteria to initiate the class action in the face of the ordinance laying such threshold limit, no legal right vested in the Appellant /Corporate Debtor can be said to have been infringed. In this age of transparency, knowledge and information revolution coupled with the fact that adequate information as required by the Respondent Allottee is not displayed on the website of the Corporate Debtor, as emanating from the impugned order, the impugned order cannot be termed to be erroneous or unsustainable. In so far as the direction given by the Hon ble Apex Court is concerned, it is in regard to initiation or continuance of Corporate Insolvency Resolution Process in the pending cases wherein status quo is directed to be observed. The order of Hon ble Apex Court cannot be interpreted to hold that the requisite information for initiating class action by an allottee under Section 7 of the I B Code to meet the threshold criteria laid down under the ordinance cannot be provided, more so when the Corporate Debtor and the Regulator are under legal obligation to display the particulars in regard to allottees on their websites. No prejudice can be claimed by the Appellant on account of the direction in so far as the same relates to providing information in regard to allottee for limited purpose of enabling it to garner necessary support for initiating class action. The appeal is disposed off with the direction that the Corporate Debtor will display the information in regard to the allottees with full particulars on its website within two weeks from today and that in the event Respondent Allottee approaches the Appellant for providing necessary information, same shall be provided to the Allottee by the Appellant.

Summary

Issues:
1. Appeal against the order directing the Corporate Debtor to provide information about the Allottees.

Analysis:
1. The appeal was filed by the Corporate Debtor against an order directing them to provide information about the Allottees. The Corporate Debtor argued that the direction was violative of the ordinance and the Hon’ble Apex Court's direction in a related matter. They also claimed that the required information was already available on the RERA website. The Tribunal noted that the impugned order did not decide on the initiation of Corporate Insolvency Resolution Process. It stated that in the current era of transparency and information accessibility, the order to provide information to the Allottee for potential class action was not erroneous. The Tribunal clarified that the Apex Court's order related to maintaining status quo in pending cases and did not prohibit providing information for initiating class action under the I&B Code. The Tribunal found no merit in the appeal and directed the Corporate Debtor to display Allottees' information on their website within two weeks and provide necessary information to the Allottee upon request.

2. The Tribunal's decision emphasized the importance of transparency and the legal obligation of the Corporate Debtor and Regulator to provide necessary information about Allottees. It clarified that the direction to provide information for potential class action did not infringe upon any legal rights of the Corporate Debtor. The Tribunal highlighted that the information displayed on the RERA website was not sufficient, and providing additional details to the Allottee for initiating class action was reasonable. The Tribunal's ruling aimed at ensuring compliance with transparency requirements and facilitating the Allottee in gathering support for potential legal actions. The decision upheld the need for disclosure of information to maintain accountability and enable stakeholders to exercise their legal rights effectively.