# In the matter of Vinay Kumar Singhal Resolution Professional for Prabhatam Advertising Pvt. Ltd. vs. Mahesh Bajaj

> NCLAT judgment dated 2023-10-10. Citation: TCN-2023-NCLAT-00137. This appeal arises from an order dated 2023-05-03 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 10 Oct 2023
- **Citation:** TCN-2023-NCLAT-00137
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/vinay-kumar-singhal-resolution-professional-for-prabhatam-advertising-pvt-ltd-vs-7274db4c

## Summary

### Background

This appeal arises from an order dated 2023-05-03 passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi Bench, Court II). The Adjudicating Authority allowed an application filed by the Respondent (Mahesh Bajaj), an Operational Creditor, seeking directions to the Resolution Professional to provide the information memorandum (IM) and other relevant documents to the Operational Creditor, who is a participant in the Committee of Creditors (CoC). The Adjudicating Authority directed the Appellant to deliver a copy of the Information Memorandum and other documents considered in the CoC meeting to the Respondent, irrespective of whether the Respondent is a participant in the CoC.

## Facts

Tulsi Nandan Kant Bansal (Financial Creditor) filed an application i.e. (IB) – 996(ND)/2020 under Section 7 of the Insolvency and Bankruptcy Code, 2016 against M/s P.G. Advertising Pvt. Ltd. seeking resolution of an amount of Rs. 1,05,00,000/-. The application was admitted on 2022-10-18, and a moratorium was imposed. Vinay Kumar Singhal was appointed as Interim Resolution Professional (IRP). During the CIRP proceedings, Mahesh Bajaj, one of the Operational Creditors representing 10% of the Corporate Debtor's debt, filed I.A. No. 2460 of 2023 seeking directions for the Resolution Professional to provide the information memorandum (IM) and other relevant documents. The Adjudicating Authority allowed this application on 2023-05-03, leading to the present appeal by the

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## Issues and analysis

### Issue 1: Whether an Operational Creditor, being a participant in the meeting of the Committee of Creditors …

**Ratio:** The legislature has made a provision for providing a copy of the information memorandum

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**Reasoning:** The Code and Regulations are silent about the supply of the information memorandum to the

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**Interpretation:** The absence of an explicit provision for providing the information memorandum

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**Application:** Since the Respondent is an Operational Creditor and merely a participant in the

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## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…
- **Appellants:** Vinay Kumar…
- **Respondents:** P.G. Advertising…; Mahesh…

## Timeline

- **2020-01-01 — Application…**: Tulsi Nandan Kant Bansal (Financial Creditor) filed an application i.e. (IB) –…
- **2022-10-18 — Application A…**: The application filed by Tulsi Nandan Kant Bansal was admitted, and a moratorium was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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