# In the matter of Ruchi Soya Industries Limited MA 518-2018 In CP (IB) 1371 and 1372 (MB) -2017

> NCLT judgment dated 2018-08-01. Citation: TCN-2018-NCLT-01023. The case involves an application (MA 518/2018) filed by Mr. Vijay Kumar Jain, a suspended…

- **Court:** NCLT
- **Order date:** 1 Aug 2018
- **Citation:** TCN-2018-NCLT-01023
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ruchi-soya-industries-limited-ma-518-2018-in-cp-ib-1371-and-1372-mb-2017-96201ff7

## Summary

### Background

The case involves an application (MA 518/2018) filed by Mr. Vijay Kumar Jain, a suspended director of the Corporate Debtor, Ruchi Soya Industries Limited, seeking an order to set aside the decision taken by the Committee of Creditors (CoC) on 28.05.2018. The CoC disallowed the representatives of the Corporate Debtor, including the applicant, from participating in CoC meetings. The applicant contends that as a suspended director, he has the right to participate in CoC meetings and receive all relevant documents. The Resolution Professional (RP) and the CoC argued that the applicant is not entitled to confidential information, particularly resolution plans, and that allowing access would be detrimental to the interests of the creditors.

## Facts

Mr. Vijay Kumar Jain, a suspended director of Ruchi Soya Industries Limited, filed an application (MA 518/2018) because the Committee of Creditors (CoC) disallowed him from participating in CoC meetings. He argued that as a suspended director, he has a right to participate in CoC meetings and receive all documents, including resolution plans. The CoC, on 28.05.2018, decided to exclude the Corporate Debtor's representatives, including Mr. Jain, from the meetings. Mr. Jain claimed that the Resolution Professional (RP) was not providing him with minutes of the meetings or access to documents. He sent emails on 26.05.2018 and 29.05.2018 requesting documents and protesting his exclusion. The RP and CoC argued that the applicant was seeking confidential information, which he

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## Issues and analysis

### Issue 1: Whether the suspended director is entitled to get the confidential information as stated in …

**Ratio:** The ratio is based on the interpretation of Section 24 of the IBC, 2016, and Regulations

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**Reasoning:** The NCLT reasoned that Regulation 35 specifically mentions that the resolution

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**Interpretation:** The interpretation is that the legislature has made a distinction between

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**Application:** The NCLT applied this reasoning to the facts of the case, concluding that Mr.

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## Parties

- **Judges:** B.S.V. Prakash…; RavikumarDu…
- **Appellants:** VIJAY KUMA…
- **Respondents:** Ruchi Soya…; Resolution…

## Timeline

- **2018-05-28 — CoC Meet…**: Committee of Creditors (CoC) disallowed the representatives of the Corporate Debtor,…
- **2018-05-26 — Email from Ap…**: Mr. Jain sent an email…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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