If the provision of Section 55 of the Companies Act, 2013 is to be complied, it can be complied only after the approval of the Resolution Plan. Before the approval of the Resolution Plan is approved by the Adjudicating Authority, the Resolution Plan being mere a proposal, the question of following Section 55 of the Companies Act, 2013 does not arise- Renaissance Steel India Pvt. Ltd. Vs. Electrosteel Steels Ltd.- NCLAT
As per ‘I&B Code’, the shareholders are not treated to be creditors. It is the promoters/shareholders who are responsible for initiation of ‘Corporate Insolvency Resolution Process’ which resulted due to nonpayment of dues of the ‘Financial Creditor(s)’ and/or the ‘Operational Creditor(s)’, apart from ‘Secured Creditor(s)’ or ‘Unsecured Creditor(s)’. Therefore, there is no scope for argument left to the shareholders or any party holding similar documents that a sanction is required under one or other provisions of law.
