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2023 (7) TMI 587 - AT - Insolvency and BankruptcyPermission to applicant to intervene - direction to RP to serve a copy of the Resolution Plan - whether copy of the Resolution Plan, which has been approved by the CoC but awaits the approval of the Adjudicating authority, can be given to the Appellant who is neither a Claimant, nor a Creditor or a participant? - whether there is any provision in the Code for the purpose of giving a copy of the Resolution Plan to the Appellant who is neither a Claimant, nor a Creditor or a participant, even before the approval of Resolution Plan by the Adjudicating Authority? - HELD THAT - The answer to this question is no more res integra as it has already been answered by this Tribunal in Association Jet Airways 2022 (2) TMI 17 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHI and by the Hon ble Supreme Court in the case of Vijay Kumar Jain 2019 (2) TMI 97 - SUPREME COURT - In the case of Association of Jet Airways, this court categorically observed that The above scheme of the Code also indicates that after Resolution Plan is submitted to the Adjudicating Authority and it is approved by the Adjudicating Authority, it no longer remains a confidential document, so as to preclude Regulator and other persons from access the said document. In the case of Vijay Kumar Jain, it has also held that Last but not least, a resolution plan which has been approved or rejected by an order of the Adjudicating Authority, has to be sent to participants which would include members of the erstwhile Board of Directors vide Regulation 39(5) of the CIRP Regulations. Obviously, such copy can only be sent to participants because they are vitally interested in the outcome of such resolution plan, and may, as persons aggrieved, file an appeal from the Adjudicating Authority s order to the Appellate Tribunal under Section 61 of the Code. Quite apart from this, Section 60(5)(c) is also very wide, and a member of the erstwhile Board of Directors also has an independent right to approach the Adjudicating Authority, which must then hear such person before it is satisfied that such resolution plan can pass muster under Section 31 of the Code. None of the judgments, cited at the instance of the Appellant, either of this Tribunal or the Hon ble Supreme Court has held that the copy of the Resolution Plan, which is still in the process of approval or rejection by the Adjudicating Authority, be given to a party who is neither a Claimant nor a Creditor or a participant - Therefore, there are no error on the part of the Adjudicating Authority in rejecting the application of the Appellant by way of the impugned order. Appeal dismissed.
Issues Involved:
1. Whether the Appellant, who is neither a Claimant, Creditor, nor a Participant, is entitled to a copy of the Resolution Plan before its approval by the Adjudicating Authority. 2. Whether there is any provision in the Code or Regulations for providing a copy of the Resolution Plan to the Appellant before its approval by the Adjudicating Authority. Summary: Issue 1: Entitlement to a Copy of the Resolution Plan The Appellant sought to intervene and obtain a copy of the Resolution Plan during its approval process by the Adjudicating Authority. The Adjudicating Authority declined the request, stating, "considering the fact that the applicant has not submitted any claim before RP, we are of the considered view that the Applicant has no locus standi." The Appellant argued that their interest in the shareholding of the Corporate Debtor entitled them to a copy of the Resolution Plan, citing the case "Association of aggrieved workmen of Jet Airways (India) Limited Vs. Jet Airways (India) Ltd 2022 SCC online NCLAT 36'. However, the Tribunal found that the Appellant was neither a Claimant, Creditor, nor a Participant and thus not entitled to the Resolution Plan. Issue 2: Provision in the Code or Regulations The Appellant's counsel admitted there was no provision in the Code or Regulations mandating the supply of the Resolution Plan to someone in the Appellant's position. The Tribunal referred to Sections 3(6)(b), 24(3), and 30(3) of the Code, and Regulations 2(1)(L) and 39(2) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, which do not support the Appellant's claim. The Tribunal reiterated that the judgments in "Association of Jet Airways' and "Vijay Kumar Jain' do not mandate providing the Resolution Plan to non-participants before its approval by the Adjudicating Authority. Conclusion: The Tribunal concluded that the Appellant, being neither a Claimant, Creditor, nor a Participant, is not entitled to a copy of the Resolution Plan before its approval by the Adjudicating Authority. The appeal was dismissed without merit.
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