NCLAT held that the suspended board of directors of the CD has a statutory right under the Code and CIRP Regulations to participate in CoC meetings and to receive resolution plans in advance. In this case, although notice for the 20th CoC meeting was issued, the RP and CoC wrongly required the appellant's representative to leave mid-meeting for "confidential" discussions, despite his earlier participation in prior meetings, and refused documents for want of a confidentiality undertaking. NCLAT found this procedure violative of governing principles and casting doubt on the fairness of the 20th CoC meeting, particularly as two PRAs were declared ineligible and only one plan was voted upon. The impugned order of the Adjudicating Authority upholding the RP's conduct was quashed and the appeal was allowed, with consequential invalidation of the decisions taken in the 20th CoC meeting.
NCLAT held that the suspended board of directors of the CD has a statutory right under the Code and CIRP Regulations to participate in CoC meetings and to receive resolution plans in advance. In this case, although notice for the 20th CoC meeting was issued, the RP and CoC wrongly required the appellant's representative to leave mid-meeting for "confidential" discussions, despite his earlier participation in prior meetings, and refused documents for want of a confidentiality undertaking. NCLAT found this procedure violative of governing principles and casting doubt on the fairness of the 20th CoC meeting, particularly as two PRAs were declared ineligible and only one plan was voted upon. The impugned order of the Adjudicating Authority upholding the RP's conduct was quashed and the appeal was allowed, with consequential invalidation of the decisions taken in the 20th CoC meeting.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4826 
Join Channel 
