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2018 (11) TMI 802 - Tri - Insolvency and BankruptcyCorporate Insolvency Resolution Process - mala fides on the part of the action of Ld. IRP and AR. - Whether prior to constituting the CoC the IRP is obliged to verify every claim as on insolvency commencement date within 7 days from the last date of receipt of the claims in terms of Regulation 13? - first meeting of the CoC held on 27.07.2018 was bad in law in light of the averments made by the Applicants? - Held that:- AR appointed to represent the Financial Creditors in this matter is required to act diligently and independently of the office of the IRP behoving his status as an AR. AR in his reply has failed to provide satisfactory answers for the lapse on his part to circulate the agenda and obtain voting instructions. Further both the IRP and the AR cannot be seen to form a caucus amongst themselves and act in a veil of secrecy to give an impression that they are trying to exclude the interest of the creditors, primarily for whose benefit the CIRP has been initiated apart from the protection of the other stakeholders and which apprehension had forced the applicants in the present instance to approach this tribunal. The changes made to the Code as well as attendant regulations in light of the consistent refrain of the Hon’ble Supreme Court taking into consideration the plight of the home buyers in Jaypee’s Case as well as other real estate companies have confronted the IRP’s and the AR’s with a challenging task thereby creating confusion in role clarity, particularly in a case like the instant one, where there are only home buyers who constitute the financial creditors and thereby eligible to be members of CoC as there are no institutional Financial Creditors or bankers who had financed the operations of the CD in order to become part of the COC. However, this should make the role of AR as well as the IRP more onerous and they should perform their duties with utmost diligence as required to be performed by them of which they will be aware and do accordingly. Taking into consideration all of the above we prima facie find no mala fides on the part of the action of Ld. IRP and AR. Thus within a period of two weeks from the date of this order Ld. IRP to process all the claims and categorically admit or reject the claims received from the home buyers as of the date of this order including the claims of the applicants and publish the updated list. Update the list of creditors whose claims have been admitted in order to enable them to participate in the voting process in the CoC through their Authorized Representative as envisaged under the code of the relevant provisions and regulations as extracted above. Within a period of four weeks from the date of this order Ld. IRP to convene a meeting of the CoC clearly spelling out the agenda for the said meeting and circulate the notice and agenda, as well as Resolution proposed therein
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