No Provision Under IBC Mandating Resolution Professional To Share Valuation Report With Suspended Management Of Corporate Debtor: NCLAT

The NCLAT ruled that Resolution Professionals (RPs) aren't obligated to share valuation reports with suspended corporate debtor management under IBC. The appellate tribunal held that such reports are prepared for Committee of Creditors (CoC) consideration, not for debtor scrutiny. The case involved a real estate company's management demanding valuation details during CIRP. This judgment clarifies information asymmetry under IBC, prioritizing creditors' interests over erstwhile promoters. While ensuring transparency to creditors, it prevents interference from suspended management in valuation processes. The ruling strengthens the RP's position in controlling the information flow during resolution, though some experts caution this may reduce plan competitiveness if promoters can't make informed bids. The decision aligns with IBC's creditor-in-control philosophy during insolvency.