2022 (5) TMI 317 - AT - Insolvency and Bankruptcy

Seeking supply of the information - seeking supply of all details and documents pertaining to any material developments concerning the Corporate Debtor on a continuing basis pending approval of the Resolution Plan - HELD THAT - The Adjudicating Authority has rightly not entertained the Application on the view that the plan which was submitted by the Appellant was based on the Information Memorandum as was available and since the plan approval is engaging attention of the Adjudicating Authority, no further information need to be provided, there are no error in the order rejecting the Application. Appeal dismissed.

Summary

Issues:
1. Rejection of application seeking information by the Appellant.

Analysis:
The appeal was filed against the order rejecting Application I.A-397/2022 seeking information. The Appellant requested the Respondent to supply specific information and documents related to the Corporate Debtor. The Appellant had submitted a plan based on the Information Memorandum published by the Resolution Professional, which was approved by the Committee of Creditors. However, the Appellant later applied to withdraw the plan, which was initially accepted but overturned on appeal. The Resolution Professional had filed an application for plan approval pending consideration before the Adjudicating Authority.

The Adjudicating Authority declined to entertain the application, stating that the plan submitted by the Appellant was based on available information and that further details were unnecessary as the plan approval process was ongoing. The Resolution Professional assured that once the plan is approved, all required information would be provided to the Appellant. The Resolution Professional cited the delay in uploading financial statements due to a change in the Statutory Auditor as the reason for the unavailability of certain information. The Tribunal found no error in the rejection of the application and dismissed the appeal, noting that the Resolution Professional would provide necessary information upon plan approval.

In conclusion, the Tribunal upheld the rejection of the application, emphasizing that the Adjudicating Authority's decision was appropriate given the ongoing plan approval process. The Resolution Professional's commitment to supplying the required information upon plan approval was noted, ensuring the Appellant's access to necessary details for future steps in managing the Corporate Debtor.