TaxTMI 
TaxTMI 
TaxTMI 
2023 (9) TMI 459
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....on under Section 7 of Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as "The Code") filed by DMI Finance Pvt. Ltd. vide Order dated 11th March, 2021. In pursuance of the publication issued by the IRP, Claims were filed by DMI Finance Pvt. Ltd. and Chandgi Ram Real Estate Consultants Pvt. Ltd. b) I.A. No. 5981 of 2022 was filed by the Appellant praying for following reliefs: "a. Direct the resolution professional to give documents and calculation based on which applicant admitted the claim of Financial Creditor. b. Direct the resolution professional to place documents and calculation based on which applicant admitted the claim of Financial Creditor. c. Direct the Resolution Professional redetermine the claim amount of the Financial Creditor in accordance with the provisions of the IBC. d. That to pass any other order as this Hon'ble Tribunal may see fit in lieu of justice." c) The Adjudicating Authority passed an Order dated 14.02.2023 observing that there are no provisions in the Code in which the shareholders can ask for such documents from Resolution Professional. However, in the interest of justice and fair play, the Adjudicating Authority directed....
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....the Adjudicating Authority has committed error in allowing the Resolution Professional to file documents in a sealed cover. It is submitted that there is no provision in the Code and Regulation that documents can be kept confidential from the shareholders of the Corporate Debtor. It is submitted that the only confidentiality that the Code provides is with respect to the information memorandum under Section 29(2) of the Code. It is submitted that claim of the Financial Creditor has been admitted for a higher amount. Shareholders asked for documents and calculations on which claims of Corporate Debtor has been admitted. Resolution Professional had contended confidentiality. Learned Counsel for the Appellant in support of his submission has relied on Judgment of Hon'ble Supreme Court in 'Cdr. Amit Kumar Sharma V. Union of India, 2022 SCC OnLine SC 1649 and in 'Madhyamam Broadcasting Limited V. Union of India & Ors., 2023 SCC OnLine SC 366 and the Judgment of Hon'ble Supreme Court in 'S.P. Velumani V. Arappor Iyakkam', (2022) 12 SCC 745. 5. Learned Counsel appearing for the Resolution Professional submits that this Appeal has become infructuous since the Adjudicating Authority vide Or....
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....udgment of Hon'ble Supreme Court in "Cdr. Amit Kumar Sharma" (supra). Hon'ble Supreme Court in the aforesaid case was considering a challenge to order of Armed Forces Tribunal which had dismissed the Applications challenging the denial of Permanent Commission in the Indian Navy. Before the Armed Forces Tribunal, the Respondents had placed certain proceedings and materials in a sealed cover which was looked into by the Adjudicating Authority while deciding the Application. Hon'ble Supreme Court in the said Judgment held that the non-disclosure of relevant material to the affected party and its disclosure in a sealed cover to the adjudicating authority sets a dangerous precedent. In paragraph 27 and 28, following has been held: "27. The elementary principle of law is that all material which is relied upon by either party in the course of a judicial proceeding must be disclosed. Even if the adjudicating authority does not rely on the material while arriving at a finding, information that is relevant to the dispute, which would with 'reasonable probability' influence the decision of the authority must be disclosed. A one-sided submission of material which forms the subject matter of ....
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....for the Appellant is "Madhyamam Broadcasting Limited" (supra) where Hon'ble Supreme Court was examining the issue pertaining to Sealed Cover Procedure and public interest claims, as observed above the present is a case arising out of IBC Proceedings and for the reasons that Resolution Plan stood approved on 01st August, 2023, we see no necessity to dwell any further on the submission which has been advanced by Learned Counsel for the Appellant. 12. The Judgment of Hon'ble Supreme Court in "S.P. Velumani V. Arappor Iyakkam & Ors." was a case when State has not pleaded any specific privilege which bars disclosure of material utilised in the earlier preliminary investigation. In the above case, the Hon'ble Supreme Court held that in the above background there is no good reason for the High Court to have permitted the report to have remained shrouded in a sealed cover. The above case arose out of criminal proceeding and does not has any application in the facts of the present case. 13. The claims submitted by Creditors in the Insolvency Resolution Process are collated by the IRP/RP and verified as per CIRP Regulations, 2016. From the information received including details of creditor....
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....is shared to the Member of CoC after receiving an undertaking from the member of the committee that such member shall maintain confidentiality of the information and shall not use such information. Sub-Regulations 3 and 4 are as follows: "(3) A member of the committee may request the resolution professional for further information of the nature described in this Regulation and the resolution professional shall provide such information to all members within reasonable time if such information has a bearing on the resolution plan. (4) The resolution professional shall share the information memorandum after receiving an undertaking from a member of the committee to the effect that such member or resolution applicant shall maintain confidentiality of the information and shall not use such information to cause an undue gain or undue loss to itself or any other person and comply with the requirements under sub-section (2) of section 29." 16. The scheme of IBC thus does not indicate that all information collected by the Resolution Professional has to be shared with Shareholders who asks for the information. In the present case, the Adjudicating Authority on an application which app....