TMI Blog2020 (9) TMI 943X X X X Extracts X X X X X X X X Extracts X X X X ..... ill be disclosed in the website of the corporate debtor. Therefore, applicant has knowledge about the claims admitted by the RP. Since he attended the COC meetings. Accordingly, no direction need be given to the RP in this regard. The contention of learned counsel for RP is that the erst while members of Board are only entitled to look into the plan as soon as resolution plan is filed with the COC it will be given to the applicant and there is no question of disclosing any information regarding Fair value and liquidation value. Application dismissed. - IA No. 191/2020 in CP (IB) 153/7/HDB/2019 - - - Dated:- 6-5-2020 - Ratakonda Murali, Member (J) and Narender Kumar Bhola, Member (T) For the Appellant : G.S. Rama Rao For the Respondent : Shabbeer Ahmed ORDER Narender Kumar Bhola, Member (T) 1. This Interlocutory application is filed by Applicant Shri Sana Venkateswarlu Subba Reddy, Promoter and shareholder and was Joint Managing Director of suspended Board of Directors of M/s. Samyu Glass Private Limited i.e Corporate debtor herein under section 60(5) of Insolvency and Bankruptcy Code, 2016 Read with Rule 11 of NCLT Rules, 2016 praying the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to provide details of valuation and liquidation value would severely affect the interest of promoters, shareholders and suspended Board of Directors of corporate debtor, in case of admitting false or illogical claims and the assets of the corporate debtor is undervalued. e. Thus this Tribunal is pleased to give directions to the respondent to provide information sought by the Applicant in the best interest of the corporate debtor in order to achive the object Maximization of asset value under the code and also the interest of Justice. 3. Reply/counter filed by the Respondent/Resolution professional. a. Respondent avers that submissions made by the Applicant are blatantly false and baseless and the same are liable to be rejected. b. Respondent averred that the applicant has misplaced the reliance on the Judgments of the Hon'ble Supreme Court and Hon'ble NCLAT as the same do not have relevancy on the instant subject matter nor support the reliefs claimed by the Applicant in the instant IA. c. It is falsely stated that Hon'ble NCLAT in Company Appeal AT No. l 132-1133 of 2019 has observed that promoters/shareholders are entitled to know the fair value/liq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ;. The I B Code' prohibits the promoters from gaining, directly or indirectly, control of the 'corporate debtor', or benefiting from the 'CIRP' or its outcome. The I B Code seeks to protect creditor of the corporate debtor by preventing promoters from rewarding themselves at the expense of creditor and undermining the insolvency processes. 11. For the aforesaid reasons, it will be evident from the 'I B Code' that the powers of the promoters as the members of the Board of Directors of the 'corporate debtor' are suspended. The voting right of the shareholders, including promoters shareholders, are suspended and shareholders' approval is deemed to have been granted for implementation of the 'Resolution Plan' as apparent from explanation to Section 30(2) (f) of the 'I B Code '. The promoters being ' related parties' of the 'Corporate Debtor', have no right of representation participation or voting in a meeting of the ' COC'. 12. Admittedly, the shareholders and promotes are not the creditors and thereby the 'resolution Plan' cannot balance the maximization of the value of the assets of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he corporate debtor and also information relating to the admission of claims by the Resolution Professional. 5. The contention of the learned counsel for the Applicant that Resolution Professional refused to furnish the information called for by the Applicant. Learned counsel contended that applicant being Member of COC (Suspended Board) is entitled to participate in the COC meetings and he is also entitled to copy of Resolution Plan for effective participation at the time of consideration of resolution plans so forth so on. Hence the information is required. However, RP refused to furnish the same hence direction is sought to the RP. 6. On the other hand counsel for RP contended that the applicant is not entitled for the information regarding the fair value/liquidation value. In this connection counsel for RP relied on Regulation 35 of IBBI (CIRP) Regulations, 2016. 7. The contention of learned counsel for RP is that he has to disclose the fair value and liquidation value only to the Members of COC after receiving an undertaking from the members to the effect that such member shall maintain confidentiality of the fair value and the liquidation value. Even RP also should m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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