Bhawna Clothing Limited (The Corporate debtor) was placed under Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC), 2016 in Jan., 2024. Mr. N was appointed as the Interim Resolu

CS Professional · Corporate Restructuring, Valuation and Insolvency · PYQS · June 2025
Bhawna Clothing Limited (The Corporate debtor) was placed under Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC), 2016 in Jan., 2024. Mr. N was appointed as the Interim Resolution Professional (IRP) and the committee of creditors was also formed. During the CIRP process, the IRP was required to send notices to the members of CoC, members of the suspended Board of Directors and other participants entitled to attend the meetings. In April, 2024, Mr. Goswami, a participant other than member of CoC, raised an issue in the meeting of creditors that he had not received any prior notices of the CIRP meetings and questioned the legitimacy of decisions taken in the meetings he had missed. Highlighting the provisions of Regulation 20 of the Corporate Insolvency Resolution Process Regulations relating to service of notice by electronic means, decide about the legitimacy of decisions taken in the meetings Mr. Goswami had missed. Is there any obligation on the part of IRP for updation of e-mail ID while serving notice by electronic means ?

Answer & Explanation:

Regulation 20 of the Corporate Insolvency Resolution Process Regulations deals with Service of notice by electronic means and states that: - A notice by electronic means may be sent to the participants through e-mail as a text or as an attachment to e-mail or as a notification providing electronic link or Uniform Resource Locator for accessing such notice. The subject line in e-mail shall state the name of the corporate debtor, the place, if any, the time and the date on which the meeting is scheduled. If notice is sent in the form of a non-editable attachment to an e-mail, such attachment shall be in the Portable Document Format or in a non-editable format together with a 'link or instructions' for recipient for downloading relevant version of the software. When notice or notifications of availability of notice are sent by an e-mail, the resolution professional shall ensure that it uses a system which produces confirmation of the total number of recipients e-mailed and a record of each recipient to whom the notice has been sent and copy of such record and any notices of any failed transmissions and subsequent re-sending shall be retained as "proof of sending". The obligation of the resolution professional shall be satisfied when he transmits the e-mail and he shall not be held responsible for a failure in transmission beyond its control. The notice made available on the electronic link or Uniform Resource Locator shall be readable, and the recipient should be able to obtain and retain copies and the resolution professional shall give the complete Uniform Resource Locator or address of the website and full details of how to access the document or information. If a participant, other than a member of the committee, fails to provide or update the relevant e-mail address to the resolution professional, the non-receipt of such notice by such participant of any meeting shall not invalidate the decisions taken at such meeting. In view of above provisions, If Mr. Goswami, failed to provide or update the relevant e-mail address to the resolution professional, the non-receipt of such notice by Mr. Goswami of any meeting shall not invalidate the decisions taken at such meeting.

Topics: Insolvency

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