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2023 (4) TMI 832 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHICIRP - Service of notice when admitted claim of Operational Creditors is 10% - Whether is it not mandatory on the part of the RP to issue notice to all the Operational Creditors in terms of Section 24(3)(c) of I&B Code if it is found by him that their admitted claim is more than 10%? - HELD THAT:- Section 24 deals with the meeting of committee of creditors. Section 24(1) provides that the members of the CoC may meet in person or by such electronic means as may be specified. Section 24(2) provides that all the meetings of the CoC shall be conducted by the RP. Section 24(3) provides that the RP shall give notice of each meeting of the CoC including the authorised representatives, members of suspended board of director and or partners of the Corporate Persons and Operational Creditors or their representatives if the amount aggregated is not less than 10% of the debt. A bare reading of the provision i.e. Section 24(3)(c) shows that it is mandatory in nature and it is incumbent upon the RP to serve notice to all the Operational Creditors of each meeting of the CoC or if they elect their authorised representatives after notice is received by them, then the notice of meeting to the authorised representatives. There is no question of otherwise knowledge acquired of the meetings of the CoC by the Operational Creditors as has been argued by Counsel for Respondent No. 1. It is also true that in view of Section 24(4) the Operational Creditor or their representatives shall not have a right to vote in each meeting of the CoC in which they participate and in case they remain absent despite notice then they cannot rake up a dispute for getting the proceeding invalidated on that account. It is held that it is incumbent upon the RP to serve notice of each meeting of the CoC to the Operational Creditors or their representatives if the amount of the aggregated due is not less than 10% of the debt. Since, in this case, it is found that no notice was given by the RP to the Operational Creditors, therefore, it is a dereliction of duty on his part for which he deserves to be burdened with costs. The cost is assessed at Rs. 1 Lakh which shall be paid by the RP to the Operational Creditors (Appellants), who are three members, in equal proportion, by way of bank draft within a period of 30 days from the date of receipt of the certified copy of this order. Looking at the fact that amount involved is too meagre to set aside the resolution plan which has been approved by the CoC by not less than 96.38% voting share, we do not find it to be a fit case for setting aside the resolution plan much less the order dated 19.09.2022 - Appeal disposed off.
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