After CIRP was initiated, former Promoter/Director cannot suppress from IRP/RP and apply for MSME Certificate and tide over ineligibility under Section 29A of the Code – Digambar Anandrao Pingle Shareholder of M/s Pingle Builders Pvt. Ltd. Vs. Shrikant Madanlal Zawar RP of M/s Pingle Builders Pvt. Ltd. – NCLAT New Delhi
The appeal is basically against passing of orders on the application of the Resolution Professional directing liquidation and not accepting the plan of the Appellant which he had submitted as the Resolution Applicant. The Appellant claimed that the Corporate Debtor was an MSME and that he could file a Resolution Plan.
NCLAT held that the Appellant has obtained an MSME Certificate for which application had been made on 05.03.2019. Clearly, CIRP with regard to the Corporate Debtor started on 19.07.2018 and on 05.03.2019 the Corporate Debtor was under the management of IRP/RP. The Appellant has not shown that the application for MSME was made through the IRP/RP. The Learned Counsel for Respondent No. 5 is claiming that there was no consent of the IRP/RP. When the Corporate Debtor was not under the management of the Appellant, such unauthorized application could not have been made and the claim of the Appellant that the Corporate Debtor is MSME would require to be ignored. Appellant cannot take advantage of his wrongful act. Keeping in view Judgment in the matter of ‘Arun Kumar Jagatramka vs Jindal Steel and Power Ltd. (2021) ibclaw.in 46 SC’, back door entries cannot be allowed. After CIRP was initiated former Promoter/ Director cannot suppress from IRP/RP and apply for MSME Certificate and tide over ineligibility under Section 29A of the IBC.