2018 (8) TMI 2151

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....ed) Board of Directors with the copies of the 'resolution plans' for their comments. Reliance has been placed on Regulations 19 and 21 of the Insolvency & Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. 2. It is submitted that the approved 'resolution plans' is binding in nature on the members (shareholders) and other stakeholders in terms of Section 31 of the I & B Code, therefore, it was the duty on the part of the 'Committee of Creditors' to provide the 'resolution plans' to the members of the (suspended) Board of Directors. 3. Mr. Ramji Srinivasan, learned Senior Counsel appearing on behalf of the respondent opposed the prayer and submitted that the....

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....editors and the 'Corporate Debtor'. The Committee of Creditors can modify the terms of debt contract only by negotiation between the creditors and the 'Corporate Debtor' that means 'Board of Directors'. That is the reason that the 'Board of Directors' have been also allowed to attend the meeting though they have no voting right. (b) 'Operational Creditors' are not able to decide the commercial viability of the 'Corporate Debtor' nor they can take risk of restructuring their debt in order to make the 'Corporate Debtor' a going concern. However, as the 'Operational Creditors' have right to trigger Corporate Insolvency Resolution Process (u/s. 9) the Committee wa....

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....oard of Directors or partners of the corporate person as the case may be. The 'Operational Creditors' or their representatives are also to be informed to attend the meeting of Committee of Creditors, if the amount of the aggregate dues is not less than ten per cent of the debt. Section 24(4) shows that the Directors, Partners, Representatives of Operational Creditors may attend the meeting of Committee of Creditors but have no right to vote in such meeting. The meeting of the Committee of Creditors is required to be conducted in such a manner as may be specified by the Board. 12. As per Section 30(5), the Resolution Applicants can attend the meeting of Committee of Creditors in which the resolution plans of the Resolution A....

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....not be handed over to any other person including the competitor 'resolution applicants'. 8. Regulation 19 relates to 'notice for meeting of the committee', which is as follow: "19 Notice for meetings of the committee- 1. Subject to this Regulation, a meeting of the committee shall be called by giving not less than seven days' notice in writing to every participant, at the address it has provided to the resolution professional and such notice may be sent by hand delivery, or by post but in any event, be served on every participant by electronic means in accordance with Regulation 20. (2) The committee may reduce the notice period from seven days to such other period of not less than twenty fo....

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....warded along with the notice to the Board of Directors or to the other participants, including the competitors and 'resolution applicants' whoever will also not attend the meeting. The 'Board of Directors' or Representative of 'Operational Creditors' or the 'Resolution Applicants' having no voting right, it is not required to be forwarded to them, though they may act in terms of decision in "Rajputana Properties Pvt. Ltd. (Supra)". 11. From the report of the Joint Parliamentary Committee it is clear that the 'Committee of Creditors' can modify the terms of 'debt' contract only by negotiations between the 'creditors' and the 'corporate debtor' i.e. the 'Board of Directors....