VIJAY KUMAR JAIN versus STANDARD CHARTERED BANK & ORS.

VIJAY KUMAR JAIN versus STANDARD CHARTERED BANK & ORS.

Members of the suspended Board of Directors are participants in CoC meetings and, being vitally interested and potentially bound by approved resolution plans, are entitled to receive copies of resolution plans and other documents furnished with the notice of CoC meetings under Regulation 21(3)(iii); such disclosure may be made subject to confidentiality undertakings or non-disclosure agreements under the insolvency professionals' regulatory framework.

Parties
Appellant: Vijay Kumar Jain; Respondent: Standard Chartered Bank & Ors.
Jurisdiction
India
Judgment Date
31 January 2019
Procedural Posture
Civil Appeal No. 8430 of 2018; W.p. (c) No. 1266 of 2018 / Judgment of the Supreme Court on Appeal (appeal and Writ Petition Allowed)
Outcome
Appeal and writ petition allowed; judgment of the National Company Law Appellate Tribunal set aside
Legal Topics
Access to Resolution Plans, Rights of Suspended Board Members as Participants in Co C Meetings, Confidentiality and Non Disclosure Obligations, Committee of Creditors Procedure, Interpretation of Insolvency and Bankruptcy Code and Related Regulations
Insolvency and Bankruptcy Company Law Civil Procedure Access to Resolution Plans Rights of Suspended Board Members as Participants in Co C Meetings Confidentiality and Non Disclosure Obligations Committee of Creditors Procedure Interpretation of Insolvency and Bankruptcy Code and Related Regulations

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 7 Authorities cited 7 Party arguments 2
Sign in to unlock

Parties

Vijay Kumar Jain

Appellant

Standard Chartered Bank & Ors.

Respondent

Procedural Posture

Civil Appeal No. 8430 of 2018; W.p. (c) No. 1266 of 2018 / Judgment of the Supreme Court on Appeal (appeal and Writ Petition Allowed)

Legal Issues

  1. 1 Whether members of the suspended Board of Directors (participants) are entitled to receive copies of resolution plans and other documents furnished with notice of CoC meetings
  2. 2 Whether Regulations or Notes on Clauses can restrict access to resolution plans to members of the committee of creditors only
  3. 3 Whether confidential information can be shared with erstwhile directors subject to undertakings or non-disclosure agreements

Ratio Decidendi

Members of the suspended Board of Directors are participants in CoC meetings and, being vitally interested and potentially bound by approved resolution plans, are entitled to receive copies of resolution plans and other documents furnished with the notice of CoC meetings under Regulation 21(3)(iii); such disclosure may be made subject to confidentiality undertakings or non-disclosure agreements under the insolvency professionals' regulatory framework.

Court Disposition

Appeal and writ petition allowed; judgment of the National Company Law Appellate Tribunal set aside

Orders

  • Appellants to be given copies of all resolution plans submitted to the CoC within two weeks from the date of this judgment
  • The resolution applicant shall convene a meeting of the CoC within two weeks thereafter including the appellants as participants