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2021 (3) TMI 1054 - Tri - Companies LawEligibility of promoter to participate in the Resolution Process - an advertisement in Form-G was issued on 17.02.2020 inviting EOI to submit Resolution Plan for the Corporate Debtor - Section 29A of the Code - HELD THAT:- It is not in dispute that the Corporate Debtor came within the definition of Medium Enterprise w.e.f 01.07.2020 by virtue of the relevant notification. Thus, the Applicant as the promoter (suspended Director) of the Corporate Debtor becomes a promoter of a Medium Enterprise w.e.f. 01.07.2020. Admittedly, on 01.07.2020 the CIRP had not come to an end. The Notification dated 26.06.2020 became effective within the currency of the CIRP process. The expression ‘at the time of submission of the resolution plan’ appearing in ‘clause (c)’ of section 29A of the Code came to be inserted w.e.f. 06.06.2018. The eligibility of a person for taking part in any process or activity within the Code has to be taken into consideration as per the timeline provided in the Code for such activity or participation. Clause (c) provides that the person may be ineligible or otherwise as on the ‘date of submission of the resolution plan’. The CIRP in the instant case ordinarily expired on 21.03.2020. IA No. 973 of 2020 for extension (of 116 days) was filed on 18.03.2020. The Applicant was freed from the ineligibility prescribed under Clause (c) of Section 29A w.e.f. 01.07.2020, well within the period of CIRP and within the period when a person/entity could submit Resolution Plan to the CoC of the Corporate Debtor - Application allowed.
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