Liquidation of corporate Debtor - Eligibility of the Appellant ...
Insolvency and Bankruptcy
May 3, 2024
Liquidation of corporate Debtor - Eligibility of the Appellant to submit the Resolution Plan under section 29 A of IBC - The tribunal upheld the declaration that the appellant was a wilful defaulter, making him ineligible under Section 29A of the IBC to submit a resolution plan. This was a significant factor in the rejection of his resolution plan and the subsequent decision to liquidate. - The tribunal highlighted the autonomy of the CoC's commercial wisdom in deciding not to approve the resolution plan submitted by the appellant. It noted that such decisions are beyond the scope of judicial review. - The tribunal noted that any ad-interim relief obtained by the appellant against his wilful defaulter status did not override the CoC's decision-making power, as the stay was conditional and temporary.
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