Date of eligibility under Section 29A of IBC should be the date on which all plans are finally considered by the CoC before it is put to vote in terms of regulation 39 of the CIRP Regulations – Avantha Holdings Ltd. and another Vs. Abhilash Lall, RP of Jhabua Power Ltd. & others – NCLT Kolkata Bench
In this landmark judgment, the Adjudicating Authority held that in dealing with a provision such as section 29A, it is not the literal interpretation that is preferred, but rather a purposive interpretation, whereby the provisions can be looked at in the context of the entire statute, which should be preferred. This is especially and expressly held to be so in the case of interpretation of section 29A. The words, “at the time of submission of the resolution plan,” occurring in section 29A(c) of the Code, should really be read as, “at the time of submission of the relevant resolution plan.”. the crucial date of eligibility should be the date on which all plans are finally considered by the CoC before it is put to vote in terms of regulation 39 of the CIRP Regulations. Therefore, the gate-pass theory advanced during the course of oral arguments, which adopts a mechanical check-box approach, is rejected.
It also held that it does not really matter if a single resolution applicant submits plans any number of times, and also whether it is really a revision or a fresh plan. It does not make any material difference at all.