Pakhi Infra & Ors. Vs Jabalpur MSW Pvt. Ltd. (NCLAT Delhi)
In the case of Pakhi Infra & Ors. Vs Jabalpur MSW Pvt. Ltd., the NCLAT Delhi addressed an appeal challenging the denial of an operational creditor’s request to access parts of a resolution plan during the Corporate Insolvency Resolution Process (CIRP). The appellant, representing the operational creditor, had filed a claim of ₹3.4 crores, which was admitted during the CIRP. However, the resolution plan proposed a payout of only ₹1 lakh to the operational creditor. The appellant argued that without access to relevant sections of the resolution plan, it would be difficult to raise detailed objections.
The NCLAT upheld the Adjudicating Authority’s decision, ruling that operational creditors cannot access parts of the resolution plan before its approval by the Adjudicating Authority. It emphasized that creditors, including the appellant, retain the right to file objections to the resolution plan, which must be considered in accordance with the law. The tribunal noted that the next hearing date before the Adjudicating Authority was 29.12.2024, and the appellant could submit objections by then. The appeal was dismissed, affirming that the resolution plan cannot be disclosed prematurely but ensuring that operational creditors’ objections are considered during the CIRP.
