Resolution Applicant(RA) is not eligible to submit Resolution Plan where RoC published a list prior to submission of Resolution Plan and disqualified from being Directors, Resolution Applicant has submitted plan during the disqualification and High Court quashed the list after submission of the plan – Mr. Rabindra Kumar Mintri IRP of MSA Developers Pvt. Ltd. – NCLT New Delhi Bench Court-VI
In this case, a list of disqualified Directors was published on 15.09.2017 by RoC by which SRA was disqualified from being Directors from 01.11.2016 to 31.10.2021. The SRA submitted the Resolution Plan on 20.03.2021. However, RoC list was quashed by Hon’ble Delhi High Court by order dated 29.09.2021.
NCLT New Delhi Bench Court-VI held that:
(i) The list was quashed by the Hon’ble Delhi High Court only after the SRA had submitted the Resolution Plan.
(ii) On the date of the submission of the Resolution Plan, the SRA was disqualified to act as Director and hence not eligible to submit a Resolution Plan under section 29A of the IBC 2016.
(iii) The duty of the IRP is not limited to obtaining an undertaking that SRA is eligible to submit a Resolution Plan under section 29A of the Code, however a basic verification was in order.
(vi) The Resolution Plan and the SRA cannot be treated as distinct from each other and must be dealt with in conjunction.
(vii)Rejects the Resolution Plan. The IRP may conduct meeting of the CoC and can decide the further course of action in the CIRP of the Corporate Debtor.
NCLT also held that the SRA has neither been convicted for a period of 2 years, nor is the Negotiable Instrument Act, 1881 mentioned under the 12th Schedule. Hence, the said conviction could not be a disqualification under section 29A of IBC 2016.