Sec. 29A came into force on 23.11.2017. Those who submitted Resolution Plan prior to the said date & if covered by clause (c) of Sec. 29A are entitled to derive benefit of second proviso to Sec. 30(4)- Numetal Limited Vs. Satish Kumar Gupta & Ors.-NCLAT

Under ‘I&B Code’ there is no provision to submit ‘Expression of Interest’ prior to ‘Resolution Plan’. What we find from the invitation seeking ‘Expression of Interest’ to submit a ‘Resolution Plan’ for ‘Essar Steel Limited’ published on 6th October, 2017 is the first stage of ‘Resolution Plan’. Therefore, we hold that ‘Expression of Interest’ is part of the ‘Resolution Plan’, which follows the ‘Resolution Plan’. In such case, the date of submission of the ‘Expression of Interest’ should be treated to be the date of submission of the Resolution Plan. There is no provision in the ‘I&B Code’ which permits an ineligible person to become eligible by selling or transferring its shares of the Company whose accounts have been declared as NPA in accordance with the guidelines of Reserve Bank of India.

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