NCLT Allahabad: Operational Creditors Not Entitled to Resolution Plan or Liquidation Value Before Approval

March 17, 2026 : The Allahabad Bench of the National Company Law Tribunal (NCLT) has held that operational creditors cannot seek disclosure of a resolution plan or liquidation value at the pre-approval stage under the Insolvency and Bankruptcy Code, 2016 (IBC), reaffirming the confidentiality framework governing the corporate insolvency process.

The ruling came while dismissing an application filed by SBC Minerals Pvt. Ltd. in the insolvency proceedings of JaiPrakash Associates Limited.

A Bench comprising Judicial Member Praveen Gupta and Technical Member Ashish Verma observed that a resolution plan remains a confidential document until approved by the Adjudicating Authority, and its disclosure is strictly regulated under the statutory scheme.

Background

SBC Minerals Pvt. Ltd., an operational creditor with an admitted claim of ₹17.68 crore, had sought:

• Impleadment in the resolution plan approval proceedings
• Disclosure of the liquidation value of the corporate debtor
• Access to relevant portions of the resolution plan concerning payments to operational creditors
• A stay on the plan approval process

The applicant argued that without such disclosures, it could not verify compliance with Section 30(2)(b) of the IBC, which guarantees operational creditors at least liquidation value.

Tribunal’s Findings

Rejecting the plea, the Tribunal held that:

• The statutory framework does not envisage disclosure of the resolution plan to individual operational creditors prior to approval
• Confidentiality obligations under the IBC override such requests at the pre-approval stage
• Operational creditors, not being members of the Committee of Creditors (CoC), have no enforceable right to access the resolution plan

The Bench relied on the decision of the National Company Law Appellate Tribunal (NCLAT) in Association of Aggrieved Workmen of Airways (India) Ltd. v. Jet Airways (India) Ltd., which clarified that only CoC participants are entitled to receive resolution plans.

On Liquidation Value Disclosure

The Tribunal examined Regulation 35 of the CIRP Regulations and noted that:

• Fair value and liquidation value are shared only with CoC members
• Disclosure is subject to confidentiality undertakings
• The statutory scheme restricts access exclusively to CoC participants

Since the applicant was not part of the CoC, no right to such disclosure existed.

Conclusion

The NCLT held that the applicant’s claim had already been admitted and reflected in the list of creditors, and no grounds were made out for intervention. Accordingly, the application was dismissed.

The ruling reinforces the limited participatory rights of operational creditors in the resolution process and underscores the centrality of confidentiality in insolvency proceedings.

Case Title: SBC Minerals Pvt. Ltd. v. Bhuvan Madan, RP of JaiPrakash Associates Ltd.
Case No.: IA No. 113/2026 in CP (IB) No. 330/ALD/2018