2019 (10) TMI 596 - Tri - Insolvency and Bankruptcy

Admissibility of application - initiation of CIRP - Default of debt - section 60(5) of I BC - HELD THAT - The Resolution professional has provided to the resolution applicants all relevant information in the Information memorandum for filing their resolution plans and CIRP cannot be further stalled by acceding to such request of the unsuccessful Resolution Applicant for serving them with copy of minutes of CoC meetings. The request of the Unsuccessful Resolution Applicant in MA No. 2140 of 2019 and 2141 of 2019 is hereby rejected. Application disposed off.

Summary

Issues:
1. Clarification on sharing CoC meeting minutes with unsuccessful Resolution Applicant
2. Inspection of records and proceedings by unsuccessful Resolution Applicants

Analysis:

Issue 1: Clarification on sharing CoC meeting minutes with unsuccessful Resolution Applicant
The Tribunal addressed the issue of whether the minutes of the Committee of Creditors (CoC) meetings should be shared with the unsuccessful Resolution Applicant. The Applicant sought clarification on sharing the minutes of CoC meetings, which contained details of the resolution plans submitted by various parties. The unsuccessful Resolution Applicant argued that the CoC's decision to approve a particular resolution plan was wrong in law and demanded access to the minutes to establish its case. However, the Resolution Professional (RP) contended that sharing such information could prejudice the Corporate Insolvency Resolution Process (CIRP) by disclosing crucial figures and reasons for approving a specific plan. The Tribunal examined relevant regulations and concluded that confidentiality of certain information, like liquidation value and fair market value, was crucial for the fair conduct of CIRP. Therefore, the Tribunal rejected the request to share the minutes, emphasizing that the Resolution Professional had already provided necessary information for filing resolution plans, and sharing the minutes would not be appropriate at that stage.

Issue 2: Inspection of records and proceedings by unsuccessful Resolution Applicants
Another set of applications were filed by the unsuccessful Resolution Applicants seeking inspection of records and proceedings related to the Corporate Insolvency Resolution Process of certain companies. The Applicants challenged the CIRP and objected to the approval of a resolution plan. The Tribunal noted that the Applicants had already filed objections to the resolution plan, and demanding minutes of CoC meetings was an attempt to bolster their case further. The Tribunal highlighted the importance of maintaining confidentiality as per regulations and rejected the request for inspection of records and proceedings. It clarified that the objections raised by the Applicants would be heard separately, ensuring a fair consideration of their concerns. The Tribunal disposed of the applications accordingly, maintaining the integrity of the resolution process.

In conclusion, the Tribunal's judgment emphasized the importance of maintaining confidentiality in the CIRP while ensuring that all parties have a fair opportunity to present their objections and concerns regarding the resolution plans. The decision provided clarity on sharing sensitive information like CoC meeting minutes and upheld the regulatory framework governing the insolvency resolution process.