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Synopsis

The National Company Law Appellate Tribunal (NCLAT) recently dismissed an appeal filed by an ex-director who had requested a copy of the resolution plan after the completion of the Corporate Insolvency Resolution Process (CIRP).

The three-judge bench of the NCLAT, consisting of Chairperson Justice Ashok Bhushan and Technical Members Arun Mitra and Arun Baroka, was hearing an appeal filed by the ex-director challenging the NCLT's order rejecting his application for a copy of the resolution plan.

The ex-director in question had served as a director of the corporate debtor but had resigned in 2014, and this resignation was officially recorded in 2016.

In 2018, the Corporate Insolvency Resolution Process (CIRP) for Shubhkamna Buildtech Pvt. Ltd. was initiated, and ultimately, the resolution plan received approval from the National Company Law Tribunal (NCLT) in 2022.

The Resolution Professional informed the bench that the resolution plan had been approved by the NCLT in 2022, and no appeal had been filed against this decision.

Furthermore, he noted that the ex-director was attempting to challenge the CIRP process, even though it had already been completed.

The ex-director argued that he held shares in the corporate debtor and sought direction from the bench to the resolution professional to clarify whether the shareholding of Shubhkamana Buildtech Private Limited in two other companies, namely Rudra Buildwell Projects Private Limited and JSS Buildcon Private Limited, had been taken into consideration when assessing the assets and liabilities of the Corporate Debtor. Additionally, he sought copies of the resolution plan.

However, the tribunal rejected his application, stating that the resolution plan, which had been approved, had already considered the rights of various stakeholders.

Consequently, the bench proceeded to dismiss the appeal, stating that the ex-director's application was uncalled for and unnecessary.

“We are of the view that entire CIRP process being over where Resolution Plan has been approved in 2022, at this stage, any direction on the prayers made by the Appellant in the application are uncalled for and unnecessary. We are of the view that the Adjudicating Authority did not commit any error in rejecting the application filed by the Appellant. There is no merit in the Appeal. Appeal is dismissed,” the tribunal said.

Advocates Mrinal Harsh Vardhan and Yougender Singh appeared for the ex-director.

Advocates Abhishek Anand, Nipun Gautam, Mohak Sharma, Sikhar Tiwari, Sajal Jain and Parveen Kaur Kapoor appeared for the resolution professional.

Case title: Diwakar Sharma vs Anand Sonbhadra