TMI Blog2021 (1) TMI 1031X X X X Extracts X X X X X X X X Extracts X X X X ..... nd vote in the meeting. Directors and partners can only attend the meeting of Committee but shall not have any right of voting and their absence does not invalidate any of the proceedings, which means that even if they are allowed to attend the meeting of Committee of Creditors, they will be only silent spectators and they have no say on any of the transactions in the proceedings - This Tribunal is of the view that by allowing the Advocate/ CA/ Company Secretary of the Corporate Debtor no purpose will be served. The Corporate Debtor itself is sufficient to provide any of the documents/papers/details sought by the Resolution Professional during the proceedings. Providing of copies of all documents in connection with the CIRP process to the Corporate Debtor - HELD THAT:- As rightly stated by the Resolution Professional it is the discretion of the Resolution Professional to appoint Accountants, legal and other professionals following the due process as specified by the IBBI under Section 25(2)(d) of Insolvency and Bankruptcy Code, 2016 and that Resolution Professional is not permitted to disclose any information pertaining to the CIRP to any third parties including Advocate/ CA/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and be provided with all information. They can assist the Resolution Professional by furnishing information relating to disputes by or against the Corporate Debtor and the true financial position of the Applicant. 4. The Applicant further stated that the Chartered Accountant can render assistance in providing the latest annual financial statements. The Company Secretary can help in describing particulars of a debt due from or to the Corporate Debtor and other details related to guarantees. The Advocate can guide the legal compliances of transactions entered into with the Corporate Debtor, in order to effectively prepare the Information Memorandum in accordance with Regulation 36 of IBBI Regulations,2016 read with Section 29 of IBC. It is also stated that the process of CIRP is highly procedural and it is difficult for a layman such as the Applicant to understand the procedural aspects involved in the CIRP. Since, the whole process affects the Applicant/Corporate Debtor, it is pertinent that he be reasonably made aware of the entire procedure with the help of his authorised representatives. 5. In the aforesaid circumstances the Applicant seeks directions from this Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess as specified by the IBBI under Section 25(2)(d) and it is also stated that RP is not permitted to disclose any information pertaining to the CIRP to any third parties including providing any documents connected with the CIRP. Hence the Applicant is not entitled to any relief. Findings 8. I have heard the arguments advanced by the learned counsel for the Applicant and the learned counsel appearing for the Respondent/ Resolution Professional. The questions to be decided is whether an Advocate/ CA/ Company Secretary of Corporate Debtor can be permitted to attend the CoC meeting of the Corporate Debtor and whether the Respondent/ Resolution Professional has to provide the copies of all the documents in connection with the CIRP? 9. The CIRP starts with admission of an application filed by a party under Section 7 and Section 9 of IBC, 2016 and it comes to an end after the approval of Resolution Plan under Sub-Section 1 of Section 31. As per the procedure, a Committee of Creditors is to be formed under Section 21, which reads as follows: - Section 21. Committee of Creditors. - (1) The interim resolution professional shall after collation of all claims rece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 defines Conduct of meeting , which is akin to the issue in the present application. Regulation 24 reads this: -. Regulation 24. Conduct of meeting (1) The Resolution Professional shall act as the Chairperson of the meeting of the committee. (2) At the commencement of a meeting, the Resolution Professional shall take a roll call when every participant attending through video conferencing or other audio and visual means shall state, for the record, the following, - a) his name; b) whether he is attending in the capacity of a member of the committee or any other participant; c) whether he is representing a member or group of members; d) the location from where he is participating; e) that he has received the agenda and all the relevant material for the meeting; and f) that no one other than him is attending or has access to the proceedings of the meeting at the location of that person (3) After the roll call, the Resolution Professional shall inform the participants of the names of all persons who are present for the meeting and confirm of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per cent. of the debt. (4) The directors, partners and one representative of operational creditors, as referred to in sub-section (3), may attend the meetings of committee of creditors, but shall not have any right to vote in such meetings: Provided that the absence of any such director, partner or representative of operational creditors, as the case may be, shall not invalidate proceedings of such meeting. (5) Subject to sub-sections (6), (6A) and (6B) of section 21, any creditor] who is a member of the committee of creditors may appoint an insolvency professional other than the resolution professional to represent such creditor in a meeting of the committee of creditors: Provided that the fees payable to such insolvency professional representing any individual creditor will be borne by such creditor. (6) Each creditor shall vote in accordance with the voting share assigned to him based on the financial debts owed to such creditor. (7) The resolution professional shall determine the voting share to be assigned to each creditor in the manner specified by the Board. (8) The meetings of the committee of creditors shall be conducted in su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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