Resolution Professional cannot exclude existing homebuyers/ past developers \ related/connected persons in EOI from submission of Rplan | RP/CoC can lay down additional criterion in Form G only having regard to the complexity and scale of operations of the business of the Corporate Debtor, as per Section 25(2)(h) of IBC – Mr. Dinesh Chaplot and Anr. Vs. Mr. Dinesh Kumar Deora, RP of Snehanjali and S.B. Developers Pvt. Ltd. – NCLT Mumbai Bench
Hon’ble NCLT Mumbai Bench held that:
(i) As per Section 25(2)(h) of the IBC, the duty of the RP to lay down the criteria for inviting prospective resolution applicants (PRAs) must be with the approval of the CoC and is not independent.
(ii) The duty of both RP and CoC is to lay down such criterion as is formulated only having regard to the complexity and scale of operations of the business of the CD and other conditions specified by the IBBI.
(iii) From a conjoint reading of Section 25(2)(h) and Regulation 36A (1), it can be presumed that the RP is not authorised to adjudicate as to the qualification or disqualification of PRAs.
(iv) An insolvency professional is duty bound to abide by all the laws at all times during the resolution process. An RP is the only person who would ensure compliance of all the laws in the processes under the IBC.
(v) Neither the CoC nor the RP has any inherent right to negate a statutory provision available to a person to submit EOI, if such a person is otherwise not ineligible within the meaning of Section 29A of the IBC.
