Operational Creditors of Joy Ltd moved a petition to NCLT against RP for directions under section 60(5) of the IBC, 2016 to direct the RP to give notice of all CoC meetings, to provide minutes of the meeting and to permi

Section 24(3) of the Insolvency & Bankruptcy Code provides that the resolution professional shall give notice of each meeting of the committee of creditors to- (a) members of committee of creditors, including the authorised representatives referred to in sub-sections (6) and (6A) of section 21 and sub-section (5); (b) members of the suspended Board of Directors or the partners of the corporate persons, as the case may be; (c) operational creditors or their representatives if the amount of their aggregate dues is not less than ten per cent of the debt. In Consolidated Engineering Company & Another vs. Golden Jubilee Hotels Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 501 of 2018], the NCLAT held that the AA has rightly held that 10 percent of total debt for the purpose of representation in the committee of creditors is to be calculated on the basis of the claim as collated and noticed by the RP. It cannot be based on the amount claimed by all the operational creditors until it is verified and compared. If the claim of operational creditors on verification is found to be less than 10 percent, the operational creditors have no right to claim representation in the meeting of the committee of creditors. However, taking into consideration facts and circumstances of the case, NCLAT allowed the representative of operational creditor only to watch proceedings of the CoC as agreed by the learned counsel for the RP. So, claims of operational creditors are to be verified by resolution professional and if it is less than 10%, they [operational creditors] will not be given representation in meeting. Operational Creditors are not legally entitled to attend and vote at CoC if there are two or more than two unrelated Financial Creditors in the Corporate Debtor. They can only watch proceedings if the amount of their aggregated dues is not less than 10% of the debt of the Corporate Debtor.