The dispute concerned the company’s 20th Committee of Creditors (CoC) meeting held on July 16, 2024.
Rao had nominated Nelluri Bapuji to represent the suspended management in CoC meetings.
Bapuji had participated in several earlier meetings. However, at the 20th meeting, he was asked to leave after failing to furnish a written authorisation and a confidentiality undertaking.
The meeting involved consideration of resolution plans submitted for the company.
Rao challenged Bapuji’s exclusion, arguing that it deprived the suspended management of its statutory right to participate in the CIRP and access material necessary to make representations before the CoC.
The resolution professional maintained that the 20th CoC meeting involved commercially sensitive material and that access could be granted only after compliance with confidentiality requirements.
The appeals were initially heard by a two-member NCLAT Bench comprising Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain. The Bench delivered a split verdict on November 10, 2025.
Justice Sharma upheld the insolvency process while Swain took the view that the exclusion of the suspended director’s representative from the 20th CoC meeting was impermissible and warranted reopening the process from that stage.
In view of the difference of opinion, the points on which the two members disagreed were referred to Technical Member Naresh Salecha for determination as the third member.