2022 (5) TMI 1473 - Tri - Insolvency and Bankruptcy

Legality of decisions taken by the CoC during its meeting - seeking direction to IRP not to call for any further CoC meeting without making the Applicant a part of the CoC - seeking stay on operation/implementation of the decisions taken by the CoC during its meeting dated 28.04.2022 during the pendency of the present Application - HELD THAT - Considering the submissions made on behalf of the Resolution Professional since the claim of the Applicant has been provisionally accepted by the Resolution Professional, therefore, the present application has become infructuous. Application dismissed.

Summary

Issues:
Challenge to decisions of Committee of Creditors (CoC) during a meeting, Applicant's inclusion in CoC, Stay on CoC decisions.

Analysis:
The judgment pertains to an application filed seeking relief to quash the decisions made by the CoC during its meeting, direct the Insolvency Resolution Professional (IRP) not to convene further CoC meetings without involving the Applicant, and to stay the implementation of the CoC decisions. The Resolution Professional accepted the Applicant's claim provisionally and confirmed the Applicant's membership in the CoC. Consequently, the Tribunal deemed the application infructuous due to the provisional acceptance of the Applicant's claim, making the relief sought unnecessary. Therefore, the Tribunal dismissed the application as infructuous based on the Resolution Professional's acceptance of the Applicant's claim and membership in the CoC.