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2020 (1) TMI 1523 - NATIONAL COMPANY LAW TRIBUNAL, DIVISION BENCH - 1, CHENNAICondonation of delay of 35 days in filing the Application for extension of a period of 90 days from 01.10.2019 till 29.12.2019 - seeking to follow the entire process under Section 230 of the Companies Act, 2013 in respect of the Corporate Debtor - HELD THAT:- Admittedly from the documents it is seen that the Scheme is proposed by the Ex - Directors and Promoters of the Corporate Debtor and the issue whether the Ex - Directors and Promoters who are ineligible under Sec. 29A of the IBC, 2016 are eligible to file an application for Compromise and Arrangement was a question which fell for consideration before the Hon'ble NCLAT in JINDAL STEEL AND POWER LTD. VERSUS ARUN KUMAR JAGATRAMKA [2020 (2) TMI 1130 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI] - Learned Counsel for the Respondent, contradicting the submissions made by the Learned Counsel for the Liquidator has emphatically contended that the Corporate Debtor is an MSME and as such the ineligibility in relation to Section 29 A of the IBC, 2016 would have no bearing upon them by virtue of Section 240A of the IBC, 2016. This Tribunal is of the view that the Respondents are trying to deceive this Tribunal by claiming themselves as an MSME, so as to enable them to submit the Scheme before the Liquidator, which is nothing short of an abuse of process of IBC. The Scheme of Arrangement has been proposed by the Ex-Directors and Promoters of the Corporate Debtor, who are qualified, taking into consideration the provisions of Section 29A of IBC, 2016 - a creditor / member who is otherwise ineligible under Section 29A of the IBC, 2016 is not qualified to be a proposer of the Scheme. Application disposed off.
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