Appellant denied access to Resolution Plan without locus standi The Tribunal held that the Appellant, not being a Claimant, Creditor, or Participant, was not entitled to a copy of the Resolution Plan before its ...
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Appellant denied access to Resolution Plan without locus standi
The Tribunal held that the Appellant, not being a Claimant, Creditor, or Participant, was not entitled to a copy of the Resolution Plan before its approval by the Adjudicating Authority. The appeal was dismissed as the Appellant lacked locus standi, and there was no provision in the relevant legal framework requiring the provision of the Resolution Plan to individuals in the Appellant's position.
Issues Involved: 1. Whether the Appellant, who is neither a Claimant, Creditor, nor a Participant, is entitled to a copy of the Resolution Plan before its approval by the Adjudicating Authority. 2. Whether there is any provision in the Code or Regulations for providing a copy of the Resolution Plan to the Appellant before its approval by the Adjudicating Authority.
Summary:
Issue 1: Entitlement to a Copy of the Resolution Plan The Appellant sought to intervene and obtain a copy of the Resolution Plan during its approval process by the Adjudicating Authority. The Adjudicating Authority declined the request, stating, "considering the fact that the applicant has not submitted any claim before RP, we are of the considered view that the Applicant has no locus standi." The Appellant argued that their interest in the shareholding of the Corporate Debtor entitled them to a copy of the Resolution Plan, citing the case "˜Association of aggrieved workmen of Jet Airways (India) Limited Vs. Jet Airways (India) Ltd 2022 SCC online NCLAT 36'. However, the Tribunal found that the Appellant was neither a Claimant, Creditor, nor a Participant and thus not entitled to the Resolution Plan.
Issue 2: Provision in the Code or Regulations The Appellant's counsel admitted there was no provision in the Code or Regulations mandating the supply of the Resolution Plan to someone in the Appellant's position. The Tribunal referred to Sections 3(6)(b), 24(3), and 30(3) of the Code, and Regulations 2(1)(L) and 39(2) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, which do not support the Appellant's claim. The Tribunal reiterated that the judgments in "˜Association of Jet Airways' and "˜Vijay Kumar Jain' do not mandate providing the Resolution Plan to non-participants before its approval by the Adjudicating Authority.
Conclusion: The Tribunal concluded that the Appellant, being neither a Claimant, Creditor, nor a Participant, is not entitled to a copy of the Resolution Plan before its approval by the Adjudicating Authority. The appeal was dismissed without merit.
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