2021 (3) TMI 756 - Tri - Insolvency and Bankruptcy

Entitlement (of Operational Creditor) to get copy of Information Memorandum and Resolution Plan - respondent has stated that applicant is neither a member of the CoC as stipulated under section 21 of the Code nor the applicant is entitled to attend the meeting of CoC - HELD THAT - Since the applicant's admitted claim as an operational creditor is less than 10 per cent. of the total debt of the corporate debtor, the applicant is not entitled to get copy of the resolution plan. As far as the status of the claim of the applicant is concerned, the respondent has submitted that the claim is admitted as an operational creditor. Application dismissed.

Summary

Issues: Application under section 60(5) of the Insolvency and Bankruptcy Code, 2016 for relief regarding details and status of claim, copy of information memorandum and resolution plan.

Analysis:
1. Claim Details and Status: The applicant, an operational creditor, filed for relief under section 60(5) seeking details and status of their claim. The applicant submitted a claim of &8377; 3,26,20,893, comprising principal and interest amounts. Despite being in touch with the interim resolution professional (IRP), the applicant was not provided with adequate information regarding the status of their claim. The IRP informed the applicant about the approval of the resolution plan by the Committee of Creditors (CoC) but failed to provide a copy of the resolution plan or information memorandum, leading to dissatisfaction on the applicant's part.

2. Applicant's Rights: The applicant argued that the approved resolution plan directly impacts them and asserted their right to receive a copy of the information memorandum and resolution plan to safeguard their interests. The applicant contended that the IRP's actions were arbitrary and in contravention of its duties, emphasizing the importance of the applicant's right to appeal against the Adjudicating Authority's decision if aggrieved. The applicant sought relief under section 60(5)(b) and (c) of the Code, supported by rule 11 of the National Company Law Tribunal Rules, 2016.

3. Respondent's Position: The respondent, in their reply, acknowledged the admission of the applicant's claim as an operational creditor but argued that the applicant's debt did not meet the threshold of 10% of the total debt, disqualifying them from attending CoC meetings or receiving the resolution plan. Citing the judgment in Vijay Kumar Jain v. Standard Chartered Bank, the respondent contended that operational creditors with debts exceeding 10% of the total debt were entitled to the resolution plan, a threshold the applicant did not meet.

4. Judgment: After considering the arguments from both sides and reviewing the pleadings, the Tribunal concluded that since the applicant's admitted claim as an operational creditor was less than 10% of the total debt of the corporate debtor, they were not entitled to receive a copy of the resolution plan. The respondent confirmed the admission of the applicant's claim, leading to the dismissal of the application as no further relief was deemed necessary.