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2022 (1) TMI 1371 - Tri - Insolvency and BankruptcyRejection of the resolution plan submitted by the Applicant - rejection on the ground that the applicant is ineligible to file resolution plan under section 29A of the Code - Section 60 (5) of the Insolvency and Bankruptcy Code, 2016 read with Rule 11 of NCLT Rules, 2016 - HELD THAT:- This Bench is of the opinion that the applicant squarely falls within the definition of Section 29A (b) and is barred to present resolution plan under Section 29A of the Code. It is further noticed that the Union Bank of India vide its order dated 25.05.2021 categorically held that in terms of RBI master circular that the applicants are wilful defaulters and further that a show cause notice dated 13.11.2019 was served to the borrower/ promoter/ directors/ guarantors. The applicant was provided personal hearing/ opportunity on 08.09.2020 and 24.12.2020. The finding of the Committee further categorised the applicant as wilful defaulter by diversion/ siphoning off the bank’s fund. The said order was reviewed by the Union Bank of India on 01.07.2021 and the review committee has confirmed the categorisation of applicants as wilful defaulter. The said action of categorisation of wilful defaulter was challenged by way of Writ Petition before the Hon’ble Bombay High Court in SHYAMLAL JAIDEV PANCHMATIYA & ANR. VERSUS UNION BANK PF INDIA & ORS. [2021 (9) TMI 1491 - BOMBAY HIGH COURT]. This Bench has no hesitation to conclude that the CoC has rightly rejected the resolution plan submitted by the Applicant herein and that he is ineligible to submit a plan under Section 29A of the Code - Application dismissed.
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