Plea Seeking Copy of Resolution Plan Was Rightly Rejected As Applicant Was Neither a Claimant Nor a Creditor of CD | NCLAT

Case Details: Rupinder Singh Gill v. Three C Universal Developers (P.) Ltd. - [2023] 153 taxmann.com 216 (NCLAT-New Delhi)

Judiciary and Counsel Details

• • Rakesh Kumar Jain, Judicial Member & Dr Alok Srivastava, Technical Member
  • Krishnendu Datta, Sr. Adv., Ms Prachi Johri & Rahul Gupta, Advs. for the Appellant.
  • Abhishek Anand, Mohak Sharma & Vaibhav M., Advs. for the Respondent.

Facts of the Case

In the instant case, the appellant entered into an agreement with the corporate debtor to purchase shareholdings of the corporate debtor. The corporate debtor initiated proceedings of oppression and mismanagement against the appellant, wherein, the Adjudicating Authority (NCLT) passed an interim order granting status quo on the said shareholdings.

Subsequently, the corporate debtor went into insolvency and its Resolution Professional (RP) filed an application seeking approval of a resolution plan before the NCLT.

During the pendency of the approval of the said plan by the NCLT, the appellant filed an application for intervention and requested a copy of the resolution plan. However, this application was declined vide the impugned order on the ground that the appellant had not submitted any claim before the RP and, thus, had no locus standi.

The appellant filed an instant appeal against the said order, arguing that he had an interest in the shareholdings of the corporate debtor by virtue of the agreement and, hence, he was entitled to a copy of the resolution plan.

NCLAT Held

The NCLAT held that a copy of the resolution plan, which was still in the process of approval or rejection by the NCLT could not be given to a party who was neither a claimant nor a creditor. Therefore, there was no error on the part of the NCLT in rejecting the appellant’s application. Accordingly, the appeal was to be dismissed.

List of Cases Reviewed

• • Jakson Ltd. v. Three C Universal Developers (P.) Ltd. [2023] 153 taxmann.com 215 (NCLT – New Delhi) (para 15) affirmed [See Annex].
  • Association of Aggrieved Workmen of Jet Airways (India) Ltd. v. Jet Airways (India) Ltd. [2022] 137 taxmann.com 162 (NCLAT – New Delhi)
  • Vijay Kumar Jain v. Standard Chartered Bank [2019] 102 taxmann.com 14/152 SCL 56 (SC) (para 12) followed.

List of Cases Referred to

• • Association of Aggrieved Workmen of Jet Airways (India) Ltd. v. Jet Airways (India) [2022] 137 taxmann.com 162 (NCLAT – New Delhi) (para 3)
  • Vijay Kumar Jain v. Standard Chartered Bank [2019] 102 taxmann.com 14/152 SCL 56 (SC) (para 4).