Resolution Applicant's Eligibility under the IBC: A Balancing Act Between Stringent Rules and MSME Protection

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..... Supreme Court dealt with significant issues regarding the applicability and interpretation of specific provisions under the Insolvency and Bankruptcy Code 2016 (IBC). The appellant, a Resolution Professional, presented a resolution plan to the National Company Law Tribunal (NCLT), which was dismissed on grounds that the promoters could not have presented the plan​​. Core Legal Iss .....

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..... ude the classification of an account as a non-performing asset (NPA) and the requirement that at least one year should elapse from such classification until the commencement of the CIRP​​. Amendment by Act 8 of 2018: This amendment, effective from November 23, 2017, aimed to prevent persons responsible for a company's financial woes from submitting a resolution plan to t .....

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..... ity of a resolution applicant under Section 240A should be the date of submission of the resolution plan, rather than the initiation of the CIRP proceedings​​. Final Judgment and Consequences The Supreme Court set aside the impugned orders of the NCLT and the National Company Law Appellate Tribunal (NCLAT) and allowed the appeal, leading to the restoration of the case to t .....

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