Resolution Plan does not remain a Confidential Document after Approval so as to deny its perusal to Claimant: NCLAT [Read Order]

The Delhi Bench of National Company Law Appellate Tribunal (NCLAT) held that Resolution Plan does not remain a confidential document after approval so as to deny its perusal to Claimant.

The Appellant, Association of aggrieved Workmen of Jet Airways (India) Limited is an association of aggrieved workmen of the Jet Airways (India) Ltd. The workmen of Jet Airways (India) Ltd. were Operational Creditors, who have filed their claim before the Resolution Professional. The Resolution Plan allocated workmen and employees an amount of Rs.52 Crores. This Appeal has been filed by the Appellant challenging the order of the Adjudicating Authority approving the Resolution Plan on several grounds as contained in the grounds stated in paragraph 9 of the Memo of Appeal.

The Appellant submitted that confidentiality in the CIRP proceeding as mentioned in Insolvency and Bankruptcy Code, 2016 is very limited and where confidentiality is required to be maintained, the Code and Regulation clearly provides for them. The limited circumstances that confidentiality is provided for is at the stage of CIRP, and the rationale for the provisions are to enable maximisation of bids; and prevent competitors from posing as applicants to surreptitiously use information for their own gain. In terms of Section 31(3)(b) of the Code, once the Plan is approved, the RP is obligated to forward the entire records of the CIRP along with the Resolution Plan to Insolvency and Bankruptcy Board of India to be recorded in its database. 

Thus, clearly, the information is not meant to be confidential after the CIRP has concluded. It is submitted that in the impugned order, there is no discussion of compliance of Section 30, sub-section (2) and Regulation 37 and 38 and to effectively support the grounds taken in the Appeal, the Appellant is entitled for copy of Resolution Plan.

The coram headed by the Chairperson, Justice Ashok Bhushan and Technical Member, Dr. Ashok Kumar Mishra held that the Resolution Plan after its approval by the Adjudicating Authority is no more a confidential document, so as to deny access to even a claimant. It is true that the Resolution Plan, even though it is not a confidential document after its approval, cannot be made available to each and to anyone who has no genuine claim or interest in the process. On various grounds the access to Resolution Plan even if it is not a confidential document, after approval can be denied in proper and appropriate cases.

“We, however, are fully satisfied that the Appellant is entitled for the relevant part of the Resolution Plan relating to the claim of the workmen and employees. We, thus, direct that part of the Resolution Plan which deals with claims of workmen and employees should be provided to the Appellant by Successful Resolution Applicants within a period of three weeks from today. The prayer made by Appellant/ Applicant for the copy of the Resolution Plan is decided accordingly,” the NCLAT said.

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