Resolution Plan no more a confidential document once approved: NCLAT
The National Company Law Appellate Tribunal (NCLAT) ruled that the resolution plan was no more a confidential document once approved.
The Appellant 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 the Memo of Appeal.
The Appellant contended 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.
Advocate Pooja Mahajan, appearing for the Respondent, refuted the submissions of the Counsel for the Appellant. She argued that the Resolution Plan is a confidential document and contains confidential information about the Corporate Debtor and the Successful Resolution Applicant, which are not available in the public domain.
The two member bench of Justice Ashok Bhushan and Dr. Ashok Kumar Mishra noted 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.
The tribunal added that before the Adjudicating Authority, Applications were filed by several Applicants including National Aviators’ Guild, Jet Aircraft Maintenance Engineers Welfare Association, Bhartiya Kamgar Sena, Jet Airways Cabin Crew Association etc. before the Adjudicating Authority praying for copy of Resolution Plan, which Application was rejected by detailed order.
The tribunal directed that the part of the Resolution Plan which deals with claims of workmen and employees should be provided to the Appellant by the Successful Resolution Applicant Respondent within a period of three weeks.
Case title: Association of aggrieved Workmen of Jet Airways (India) Limited v/s Jet Airways (India) Ltd.
Citation: Company Appeal (AT) (Insolvency) No. 643 of 2021 & I.A. No.1700 of 2021
