Consolidated Engineering Company & Anr Vs. Golden Jubilee Hotels Pvt Ltd [Company Appeal (AT) (Insolvency) No. 501 of 2018] - Synopsis
Team SoOLEGAL 12 Dec 2020

In this case, Consolidated Engineering Company & Anr Vs. Golden Jubilee Hotels Pvt Ltd [Company Appeal (AT) (Insolvency) No. 501 of 2018], the Court was of the opinion that the Adjudicating Body had properly held that 10 percent of the overall debt for the benefit of inclusion in the Committee of Creditors was to be determined on the grounds of the claim as collated and noted by the resolution professional. It cannot be calculated on the sum reported by all Operational Creditors unless it is checked and compared. If the assertion of Operational Creditors is found to be less than 10% on verification, the Operational Creditors will have no right to claim representation at the Company of Creditors conference. However, taking into account the facts and circumstances of this case, the Bench had only allowed the representative of the Operational Creditor to attend the proceedings of the Committee of Creditors. The representative will not be able to protest or intervene in the proceedings of the Committee of Creditors and if any adverse action is made, the Operational Creditor will have the right to move the appropriate application at an appropriate time before any appropriate forum. Operational Creditor may receive the name of the representative who may witness the proceedings.
The appeal was dismissed. 

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