# In the matter of Shekhar Resorts Ltd. & Ors CA-260-261-C-III-ND-19 in IB-22(ND)-2018

> NCLT judgment dated 2019-08-26. Citation: TCN-2019-NCLT-01778. The ex-management of the Corporate Debtor filed applications under section 60(5) of the IBC,…

- **Court:** NCLT
- **Order date:** 26 Aug 2019
- **Citation:** TCN-2019-NCLT-01778
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shekhar-resorts-ltd-ors-ca-260-261-c-iii-nd-19-in-ib-22nd-2018-a476be9c

## Summary

### Background

The ex-management of the Corporate Debtor filed applications under section 60(5) of the IBC, 2016, seeking financial information from the Resolution Professional (RP). The applicant represents that the CIRP was initiated against the Corporate Debtor on 11.09.2018. There were 10 CoC meetings convened from 11.10.2018 to 28.03.2019. The applicant alleges that the RP has not shared financial information, including the Valuation Report of the properties. The applicant claims the asset value of the Corporate Debtor is approximately Rs. 432 Crores, while the RP's valuation is approximately Rs. 160 Crores. The applicant relies on a Supreme Court judgment in Vijay Kumar Jain vs. Standard Chartered Bank & Ors., arguing that every financial decision in the CoC meeting has a

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## Facts

The ex-management of Shekhar Resorts filed applications seeking financial information from the Resolution Professional (RP) during the Corporate Insolvency Resolution Process (CIRP). The CIRP was initiated on 11.09.2018. The ex-management claims the RP has not shared the valuation report and that the asset value is significantly higher than the RP's valuation. The ex-management relies on a Supreme Court judgment regarding the bearing of financial decisions on personal guarantors. The RP contends that the ex-management has not cooperated, failed to provide necessary information, and has not aided the CIRP process. The RP also highlights the ex-management's failure to sign a Non-Disclosure Agreement. The ex-management is Naresh Kumar Sharma.

## Issues and analysis

### Issue 1: Whether the ex-management of the Corporate Debtor is entitled to receive the valuation report and …

**Ratio:** The Code does not contemplate sharing a valuation report with the board of directors

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**Reasoning:** The tribunal reasoned that the purpose of CIRP is to resolve insolvency, and sharing

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**Interpretation:** The interpretation of the IBC and its regulations suggests that the

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**Application:** The tribunal applied the ratio to the facts by noting that the ex-management's

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## Parties

- **Judges:** R. VARADH…; Harish Chander…
- **Appellants:** Sh. Naresh Kumar…
- **Respondents:** Shekhar R…; Abhishek Anand,…

## Timeline

- **2018-09-11 — CIRP Init…**: CIRP was initiated…
- **2018-10-18 — CA No. 308 of 2…**: The Respondent filed C.A. No. 308 of 2018 seeking directions to the directors of the…

## 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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