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TMI Blog2022 (12) TMI 825X X X X Extracts X X X X X X X X Extracts X X X X ..... olution plans that may be discussed at meetings of the committee of creditors, must be given a copy of such plans as part of documents that have to be furnished along with the notice of such meetings. The suspended management must be provided with the copy of the resolution plan. However, the resolution professional can take an undertaking from members of the erstwhile Board of Directors to maintain confidentiality. In the present case, the reply of resolution professional to the objection of the suspended management, states about the 4th CoC meeting, wherein the procedure to obtain the data was informed. The resolution professional are directed to provide the resolution plans to the suspended management and then convene a meeting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... percentage right as stated below: Sr. Name of Financial Creditor % Voting Share (i) State Bank of India 23.24% (ii) Volark Auto Private Limited 1.61% (iii) Suraksha ARC 42.36% (iv) AU Small Finance Bank Limited 12.45% (v) Sundaram Finance Limited 0.63% (vi) Shri Ram City Union Finance Limited 7.98% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by Hon ble Supreme Court in the matter of Vijay Kumar Jain V/s Standard Chertered Bank and Ors. 5. However, resolution professional through its reply dated 21.05.2022, replied to the objections of the suspended management; the reply to the said objection is reproduced below: 2. In the present case, in the 4th CoC meeting dated 03.07.2021, wherein the suspended management along with other members were informed about the procedure of obtaining data / documents of the company , RP stated in the meeting that she will create a data room where IM/all data of the company will be uploaded and access will be provided to those who will submit the confidentiality undertaking. Needless to mention that RP kept reiterating in various meetings th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t such meeting. Regulation 35 makes it clear that the resolution professional shall provide fair value and liquidation value to every member of the committee only after receipt of resolution plans in accordance with the Code [see regulation 35(2)]. Also, under Regulation 38(1)(a), a resolution plan shall include a statement as to how it has dealt with the interest of all stakeholders, and under sub-clause 3(a), a resolution plan shall demonstrate that it addresses the cause of default. This Regulation also, therefore, recognizes the vital interest of the erstwhile Board of Directors in a resolution plan together with the cause of default. It is here that the erstwhile directors can represent to the committee of creditors that the cause of d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... direct the resolution professional to provide the resolution plans to the suspended management and then convene a meeting of the CoC and the CoC will deliberate on the resolution plans afresh and either reject them or approve them with the requisite majority, after which, the further procedure detailed in the Code and the Regulations will be followed. Further, the resolution professional and CoC may consider the other objections of the suspended management, if relevant. It is to be done within two weeks. 9. We may indicate that the time has been utilized in these proceedings must be excluded from the period of the resolution process of the corporate debtor as has been held in Vijay Kumar Jain Vs. Standard Chartered Bank Ors. 10. IA ..... X X X X Extracts X X X X X X X X Extracts X X X X
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