Director, whether nominee or paid, being the part of the BOD of another company, which was declared as NPA will also attract the disqualification u/s 29A- Dorairaj Thillairaj & Anr. Vs. Ashok Magnetic Ltd. & Ors.-NCLAT
Section 29A (c) mandates that the ‘resolution applicant’ should either be in control of the affairs of the company which is declared as non-performing asset (NPA) under the Reserve Bank of India guidelines or should be a promoter of the company, which is declared as NPA. The disqualification laid down will not be applicable to the Appellant. NCLAT are not inclined to grant any relief in the matter of Dorairaj Thillairaj & Anr. Vs. Ashok Magnetic Ltd. & Ors.
