In this case, Resolution Professional rejected the plan of the promoter of the Corporate Debtor(MSME) that the Appellant does not meet the eligibility norm as per Section 25(2)(h) of Code, prescribing the Net Worth of Rs.2 Crores by the COC and DIN of the Appellant is under default and not eligible as per Section 29A(e) of the Code, 2016. The AA upheld the view of the RP. NCLAT set aside the AA’s order and held that in any event, it is unequivocal that the Corporate Debtor is an MSME and it is not necessary for the Promoters to compete with other Resolution Applicants to regain the control of the Corporate Debtor. Further, this Tribunal, keeping in view of the object of the Code that the Maximization of the Value of the Assets of Corporate Debtor is to be kept in mind in achieving its object. To give an opportunity to regain the control of the Corporate Debtor, the Management/Promoters/Erstwhile Directors of the Corporate Debtor being an MSME, not necessary to compete with other Resolution Applicants.
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