Suspended director's access to insolvency meeting material is limited; confidential resolution plans and valuation data need not be disclosed.

A suspended director may attend committee of creditors meetings under the Insolvency and Bankruptcy Code, 2016, but only without voting rights and with access to documents necessary for participation. The applicable regulations require circulation of notice and meeting-related papers to participants, while fair value and liquidation value are supplied to committee members under confidentiality, and resolution plans are placed before the committee as confidential commercial material. On that scheme, the suspended director's entitlement is limited to attendance and essential meeting material, and does not extend to disclosure of confidential information, fair value, liquidation value, or resolution plans.

---

---

Issues: Whether a suspended director, as a participant in the committee of creditors meetings, is entitled as of right to receive confidential material including resolution plans, fair value and liquidation value, apart from notice and documents necessary for participation in the meetings.

Analysis: Section 24 of the Insolvency and Bankruptcy Code, 2016 requires notice of committee of creditors meetings to the suspended board of directors and permits them to attend without voting rights. Regulation 21 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 ensures that participants receive the notice and the documents relevant to the matters to be discussed and voted upon. However, Regulation 35 of the same Regulations specifically provides that fair value and liquidation value are to be furnished to every member of the committee on an undertaking of confidentiality, and Regulation 39 contemplates submission of the resolution plan to the committee. On this scheme, the entitlement of a suspended director is limited to attending meetings and receiving material necessary for participation, and does not extend to confidential commercial information reserved for the committee members.

Conclusion: The suspended director is entitled to attend the committee of creditors meetings, but not to insist on disclosure of confidential information or resolution plans treated as confidential by the resolution professional or the committee.

---