2021 (3) TMI 356 - Tri - Insolvency and Bankruptcy

Company under liquidation - Providing of information sought by the Information Utilities - Seeking direction to Liquidator to deduct costs incurred for supplying the same from the amounts already paid to him for the same - Section 38 of IBBI (Information Utilities) Regulation, 2017 - HELD THAT - On perusal of Section 38 of IBBI (Information Utilities) Regulation, 2017, it is clear that the information utility shall not provide access to the reports, registers and minutes submitted under sub-regulation (1) to any person other than the concerned insolvency professional, the Board or the Adjudicating Authority. Payment of balance amount - HELD THAT - The learned counsel for the respondent stated that he is not aware of the quotation received by the applicants from M/s Suraj Stationary and xerox, Mumbai stating that the photostat costs of A/4 Black and while per print will be ₹ 1.50 per piece plus 18% GST. However, the respondent relied on another invoice produced by the same organisation stating that the photo copy charges of A/4 black and white printing charges per sheet is ₹ 3/-. Since the very same organisation has issued the quotation, the Respondent is directed to reduce the photocopying charges as ₹ 1.50 per piece and calculate the amount collected accordingly and inform the applicants, if any, further amount to be paid by them for providing the documents sought by them in this application, which the learned counsel for respondent had agreed to provide. Supply of the Minutes of meetings with the Committee of Creditors - HELD THAT - As rightly stated by the respondents in case the same is provided to the applicants, that will consequently affect the bidding process of the Corporate Debtor properties. Moreover, this Tribunal is of the opinion that minutes of the meetings of Committee of Creditors has nothing to do with the claims preferred by the applicants, being the former employees of the Corporate Debtor Excel Glasses Limited. Hence that prayer to supply the minutes of meetings with the Committee of Creditors is rejected. Respondent Liquidator is directed to provide all other documents sought by the applicants in these I.As, by collecting excess fee, if any, after adjusting the amount which they have already remitted ie., ₹ 31500/-, within a week from the date of this order. Application disposed off.

Summary

Issues: Former employees seeking direction for compliance with interim order and provision of relevant documents by Liquidator.

The former employees of Excel Glass Limited filed IAs under NCLT Rules, 2016 seeking directions for the Liquidator to comply with an interim order and provide specific documents. The applicants requested various documents, including books of accounts, meeting minutes, and payment details, to determine their lawful dues related to salary arrears, bonuses, medical reimbursements, gratuity, provident fund, and notice pay. They emphasized the necessity of these documents to ascertain their entitlements accurately, especially in the absence of any settlement agreement binding them. The applicants highlighted discrepancies in the documents provided by the Liquidator and stressed the importance of receiving the required information for fair assessment of their claims.

Analysis:

The former employees sought the Tribunal's intervention to compel the Liquidator to adhere to the interim order and furnish specific documents crucial for determining their lawful dues. They emphasized the significance of receiving accurate and relevant information, especially regarding their financial entitlements such as salary arrears, bonuses, and gratuity. The applicants underscored the necessity of the requested documents to ensure a fair assessment of their claims, particularly in the absence of any settlement agreement binding them to predetermined terms. They raised concerns about discrepancies in the documents provided by the Liquidator and stressed the importance of receiving the required information to ascertain their entitlements accurately.

Judgment:

The Tribunal acknowledged the former employees' legitimate concerns and directed the Liquidator to provide the requested documents, excluding confidential information related to the Committee of Creditors' meetings. While addressing the applicants' payment concerns, the Tribunal instructed the Liquidator to adjust any excess fees collected and provide the remaining documents within a specified timeframe. The Tribunal rejected the request for minutes of meetings with the Committee of Creditors, citing its irrelevance to the applicants' claims. By issuing these directives, the Tribunal aimed to facilitate a fair assessment of the former employees' dues and expedite the resolution process, ensuring transparency and compliance with legal obligations.