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TMI Blog2020 (9) TMI 943X X X X Extracts X X X X X X X X Extracts X X X X ..... creditors to the Resolution professional/Interim Resolution Professional. 2. Averments in the Application in brief: a. The averments in the interlocutory application in brief that CIRP started against M/s. Samyu Glass Private Limited, corporate debtor herein by Andhra Bank, Financial Creditor herein. This Tribunal by order dated 18.10.2019 was pleased to admit the company petition and appointed Mr. Ravinuthala Srinivasa Rao as IRP, and further as per the decision of the COC the IRP has been continued as RP. b. It is averred that prelude to the initiation of CIRP the Respondent has got the value of the assets of the Company assessed for arriving at the liquidation value which is a primary condition for a successful resolution process. Pursuant to the same, the Applicant vide his email correspondent dated 09.01.2020 requested the Resolution Professional i.e Respondent to provide "Necessary information related to valuation and particulars of valuation and liquidation, value prepared by the agencies concerned along with the details of claims admitted so that the suspended Board of Directors would examine the data to assist the Resolution Professional in the Process" However, Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "(2) After the receipt of resolution Plans in accordance with the Code and these regulation, the Resolution Professional shall provide the fair value and the liquidation value to the every member of the Committee in electronic form, on receiving an undertaking from the member to the effect that such member shall maintain confidentiality of the fair value and liquidation value and shall not use such values to cause an undue gain or undue loss to itself or any other person and comply with the requirements under Sub-Section (2) of Section 29. (3) The resolution Professional and registered valuers shall maintain confidentiality of the fair value and the liquidation value". d. It is averred that the above provision casts a duty not only on the Resolution Professional but also on the members of COC to maintain confidentiality in respect of fair value and liquidation value of the assets of the corporate debtor. The object of the legislature behind the said provision is to avoid having undue advantage for one resolution Applicant over the other in the resolution process. Regulation does not mention any other category of stakeholders except members of COC to be entitled to know the info ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or'. g. It is further averred that if the information pertaining to valuation is divulged by the promoters to the interested resolution applicants, the entire process of resolution would be vitiated and there is a threat to the promoters taking back door entry into the company who are otherwise ineligible under the code. h. It is averred that the applicant is free to carry out his independent valuation of the assets of the corporate debtor. It is submitted that in case the applicant is so concerned for the maximization of the value of the assets of the corporate debtor, he is free to get a competent resolution applicant as the last date of submission of resolution plan is not yet elapsed. i. It is averred that with regard to the details of claims submitted by the secured and unsecured creditors to RP are concerned, the applicant being a participant in every meeting of COC is already privy to all the claims submitted by creditors of the corporate debtor. As and when new claims are submitted, the details of the same are placed before COC and the details are provided in the information memorandum. j. It is further submitted that the instant application is filed with the fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ber to maintain confidentiality. Regulation 35 of IBBI (CIRP) Regulations, 2016 is as follows: "(2) After the receipt of resolution Plans in accordance with the Code and these regulation, the Resolution Professional shall provide the fair value and the liquidation value to the every member of the Committee in electronic form, on receiving an undertaking from the member to the effect that such member shall maintain confidentiality of the fair value and liquidation value and shall not use such values to cause an undue gain or undue loss to itself or any other person and comply with the requirements under Sub-Section (2) of Section 29. (3) The resolution Professional and registered valuers shall maintain confidentiality of the fair value and the liquidation value". 9. Counsel for RP contended that Applicant is not member of COC. It is true Applicant has no voting right. Applicant is a mere invitee of the COC. RP cannot share the information regarding the fair value and liquidation value with the applicant. He is bound to maintain the confidentiality. He has to disclose to the Members of COC. Therefore, directions sought for can't be granted in favour of the applicant. 10. Re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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