Rajputana Properties Pvt. Ltd. Vs. Ultra Tech Cement Ltd. & Ors. [IA No. 594 of 2018 in CA (AT) (Insolvency) No. 188 of 2018]
It was held that-
(a) While scrutinizing the resolution plan under section 30 (2), the RP cannot hold or decide as to who is ineligible under section 29A. Neither
section 30 (2) nor any other provision in the Code confers such power on the RP to scrutinize the eligibility of Resolution Applicants.
(b) As per section 30 (2), the RP is required to examine whether resolution plan confirms the provisions as mentioned therein but he cannot
disclose it to any other person, including resolution applicant(s), who has submitted the resolution plan. The resolution plan submitted by one
or other resolution applicant being confidential cannot be disclosed to any competitor Resolution Applicant nor any opinion can be taken or
objection can be called for from other resolution applicants with regard to one or other resolution plan.
(c) The RP is not only required to give notice of the meeting to the members of CoC, but also to the members of suspended Board of
Directors or partners of the corporate person, as the case may be. The OCs or their representatives are also to be informed to attend the
meeting of CoC, if the amount of the aggregate dues is not less than ten percent of the debt.
(d) The CoC, while approving or rejecting one or other resolution plan, should follow transparent procedure. It should record the reason in
brief while approving or rejecting one or other resolution plan. The members of suspended Board of Directors or its partners, OCs or
their representatives and resolution applicant(s) are not mere spectators. They may express their views in the meetings of the CoC.
Their views should be recorded and taken into consideration by the CoC before approving or rejecting one or other resolution plan.
The resolution applicant(s) are entitled to be present when the resolution plans are opened and placed before the CoC as per section 30 (5). At this
stage, they may point out whether one or other resolution applicant is ineligible in terms of section 29A or not.
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