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The NCLAT bench was hearing an appeal against an order passed by the NCLT Delhi, which directed the resolution professional to provide a copy of the resolution plan to the operational creditor
The National Company Law Appellate Tribunal (NCLAT) has recently held that an operational creditor who is a part of the Committee of Creditors does not have the right to seek a copy of the information memorandum.
“Thus, in view of the aforesaid discussion, the question framed in the beginning is hereby answered to the effect that the Operational Creditor being a participant in the meeting of the CoC has no right to seek a copy of the information memorandum,” the court observed.
The NCLAT bench in Delhi, comprising Judicial Member Rakesh Kumar Jain and Technical Member Naresh Salecha, was hearing an appeal against an order passed by the NCLT Delhi, which directed the resolution professional to provide a copy of the resolution plan to the operational creditor.
The appellant, who is the resolution professional, contended that the operational creditor is a participant in the meetings of the committee of creditors and is not allowed to vote in these meetings. He emphasized that, as per the regulations, the information memorandum is required to be provided to the members, and there is no mention of providing a copy to the participant.
The respondents contended that the regulations only pertain to the procedure of conducting the meetings and do not address the substantive provision of supplying the information memorandum to the operational creditor or participant.
The NCLAT set aside the order of the NCLT and stated that the legislature has made a provision to provide a copy of the information memorandum to the members but not to the participants.
”…the Code and Regulations are totally silent about the supply of the information memorandum to the participant, it has to be inferred that the legislature has made a provision for providing a copy of the information memorandum to the member of the CoC and the Resolution Applicant but not to the participant of the meeting of the CoC,” the NCLAT said.
Case title: Vinay Kumar Singhal Resolution Professional for PG Advertising Pvt. Ltd. vs Mahesh Bajaj
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