Appellant's Request for CIRP Claim Evidence Granted Despite Confidentiality Concerns

The Appellant sought directions for the Resolution Professional (RP) to provide documents and calculations supporting the admission of a Financial Creditor's claim in a Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority directed the RP to submit the requested information. The RP's request to submit documents in a sealed cover without e-filing was granted, leading to objections from the Appellant regarding confidentiality. Despite this, the Adjudicating Authority approved the Resolution Plan, emphasizing its satisfaction with the provided information and dismissing the appeal as moot.

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Issues Involved:
1. Provision of documents and calculations by the Resolution Professional (RP).
2. Confidentiality and sealed cover procedure.
3. Approval of the Resolution Plan.

Summary:

Issue 1: Provision of Documents and Calculations by the Resolution Professional (RP)
The National Company Law Tribunal (NCLT) initiated the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor on an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). The Appellant filed I.A. No. 5981 of 2022 seeking directions for the RP to provide documents and calculations based on which the claim of the Financial Creditor was admitted. The Adjudicating Authority, in its order dated 14.02.2023, directed the RP to file an additional affidavit with all supporting documents and calculations within 7 days. The Appellant's subsequent appeal was dismissed, allowing the RP to seek appropriate directions from the Adjudicating Authority.

Issue 2: Confidentiality and Sealed Cover Procedure
The RP filed I.A. No. 1756 of 2023, requesting permission to submit the required documents in a sealed cover without e-filing. The Adjudicating Authority, in its order dated 05.06.2023, allowed this request, stating that the objections raised by shareholders regarding the Resolution Plan and the documents on which the claims of the Committee of Creditors (CoC) members were admitted would be considered before the approval of the Resolution Plan. The Appellant challenged this order, arguing that there is no provision in the IBC or its regulations for keeping documents confidential from shareholders. The Appellant relied on various Supreme Court judgments that criticized the sealed cover procedure.

Issue 3: Approval of the Resolution Plan
The RP argued that the appeal had become infructuous as the Adjudicating Authority had approved the Resolution Plan on 01.08.2023. The Adjudicating Authority, in its approval order, stated that it had reviewed the documents and calculations provided by the RP and was satisfied with them. The Tribunal observed that the scheme of the IBC does not mandate sharing all information collected by the RP with shareholders. The Adjudicating Authority is empowered under Rule 43 of the NCLT Rules, 2016, to call for any information or evidence necessary for passing orders. Given that the Resolution Plan had already been approved, the Tribunal found that the issues raised by the Appellant had become academic and dismissed the appeal.

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