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Supreme Court of India 2019-01-31 allowed

VIJAY KUMAR JAIN vs STANDARD CHARTERED BANK

Bench: 2 — Rohinton Fali Nariman, Navin Sinha

In Brief

A suspended Board member of an insolvent company sought to access resolution plans submitted to the Committee of Creditors (CoC), though he had no voting rights. The National Company Law Appellate Tribunal allowed him to attend CoC meetings but denied document access. The Supreme Court held that non-voting participants—operational creditors and erstwhile directors—have a vital interest in resolution plans (which bind them under Section 31 and affect guarantees and debt repayment under Section 30(2)(b)). They must receive copies of such plans beforehand under Regulation 21(3)(iii) to participate effectively and comment meaningfully. Confidentiality may be maintained through undertakings or non-disclosure agreements. The appeal was allowed and the Tribunal's order set aside.",

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Insolvency and Bankruptcy Code Corporate Insolvency Resolution Process Committee of Creditors Resolution Plans Operational Creditors Board of Directors Document Access Participation Rights

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