JCP Industries Ltd (JIL) was incorporated in the year 2011 with an authorized share capital of ₹ 2,000 crore having its registered office located in Mumbai with the main objects to carry out the business (a) manufacturin

JCP Industries Ltd (JIL) was incorporated in the year 2011 with an authorized share capital of ₹ 2,000 crore having its registered office located in Mumbai with the main objects to carry out the business (a) manufacturing of heavy duty earth moving machinery and their spare parts (b) purchase, sale, construction of multi-story commercial and residential apartments under own name or as under Joint Development Agreements (c) Mining of minerals and thereafter refining and processing them for sale; and (d) doing the business in the hospitality sector by running and maintaining Hotels, Resorts and Budget Hotels. The paid-up share capital of the company as on date is ₹ 1,750 crore. During the course of business, the company has approached various banks, state finance corporations and NBFCs for availing financial assistance in the nature of term loans and other facilities. However, based on the business plans and security offered, the finance proposal was approved by National Bank of India (the Bank) in the form of both fund based and non-fund based limits. The company during the course of its business operations was also availing credit for 90 days to 120 days from its creditors in connection with the purchase of raw material being used in the business of manufacturing heavy duty earth moving machineries, real estate, mining and hospitality sectors. The progress of the company since its incorporation till 31 st March, 2019 was exceptional. However, because of certain transactions carried out by the directors with their relatives and other parties between 1 st July, 2020 to 30 th June, 2021 which were in the nature purchase of raw-material for different business segments of the company including the purchase of immovable properties as well as transferring and sale of goods and assets of the company to such related and other parties by giving them preference over the other buyers ultimately resulted into mismatch in the cash flows and consequently resulted into losses to the company. With an intention to grow organically, the company also incorporated a wholly owned subsidiary in the year 2017 under the name of JCP Buildcon Ltd (JAL) which was mainly engaged in the real estate business involving construction of apartments and flats in multi-story buildings under the Joint Development Agreements being entered into with the various parties including various State Governments under Housing Schemes. JAL entered into a tripartite Joint Development Agreement with Jaipur Development Authority (JDA) for construction of apartments and flats in multi-story buildings after development of land belonging to JDA. In an attempt to extend support to JIL, JAL had also mortgaged its assets in favour of banks in the month of August, 2018 when additional financial assistance was provided to JIL. The financial condition of JIL started deteriorating after July, 2019 because of reduction in the business activities as well as default being committed in honoring the debt obligations towards banks, payment to trade creditors and delays in construction of apartments to be handed over to the buyers who had entered into agreements with the company and have paid almost 95% of the cost of the apartment. The banks, trade creditors and buyers of the flats were constantly making follow up with the management but no reply was given to them by the management of JIL as well as JAL. National Bank of India during their internal review meeting informed their legal team that the promoter/directors may have siphoned off the money which was supposed to have been used for business purposes; since it appears to them that the amounts have been advanced to related parties and diverted towards a few suspicious transactions. The bank despite the continuous follow up with the management and the Board of directors could not get any suitable response relating to the repayment plan to honor the debt obligations. Considering the situation and based on the recommendation of their legal department, the bank decided to take action against the company under the Insolvency and Bankruptcy Code, 2016 (the Code) and thus filed an application on 16 th February, 2022 before the Adjudicating Authority (AA) for initiating Corporate Insolvency Resolution Process (CIRP). In the application, the Bank had proposed name of Robin to act as Interim Resolution Professional (IRP). Simultaneously, other lenders of JAL also submitted an application before the AA to initiate CIRP against JAL for default in repayment of their dues. After hearing the parties, the AA admitted the applications in the case of JIL and JAL on 25 th April, 2022 and also confirmed the appointment of Robin as IRP in both the companies. In the case of JIL, Robin constituted a Committee of Creditors (CoC) on 15 th May, 2022 and called first meeting of the CoC on 20 th May, 2022. The constitution of CoC by Robin was challenged by the operational creditors as well as home buyers since their name was not included in the list of the CoC. Further, the members of the suspended Board of directors of JIL also challenged the actions of Robin who did not allow their participation in the first meeting of the CoC. During the first meeting of the CoC in the case of JIL, Robin was confirmed to act as Resolution Professional (RP) by the CoC and was asked to invite the Expression of Interest (EoI) from the Resolution Applicants (RA) for submitting Resolution Plan. Besides the above, JDA has also issued notice to JAL for taking over possession of the land given for the purpose of construction. Considering the above facts answer the following questions: Examine the correctness of the following statements by giving brief reasons in respect of each of the following independent cases in the context of facts in the aforesaid case study, provisions of the Code as well as the decided case laws : The objection raised by the members of the suspended Board of directors to include them in CoC and to get the copy of resolution plan of the company is not maintainable.