Resolution Professional as well as CoC are equally responsible for safeguarding the interests and assets of a Corporate Debtor under CIRP and would take as much caution to ensure that an applicant under the purview of section 29A of the Code is not qualified for submission of a resolution plan – Rainaissance Steel India Pvt. Ltd. Vs. Mr. Dhaivat Anjaria RP – NCLT Kolkata Bench
March 20, 2018
The appellant alleged that two of the resolution applicants (Tata Steel and Vedanta Limited) were not eligible to submit the resolution plans in view of clause (d) read with clauses (j) and (i) of section 29A of the Code. It contended that the Resolution Professional did not consider objections in respect of ineligibility of resolution applicants. NCLT held that it cannot make a decision to hold that the Resolution Applicants are eligible or ineligible. It observed that the Resolution Professional as well as CoC are equally responsible for safeguarding the interests and assets of a Corporate Debtor under CIRP and would take as much caution to ensure that an applicant under the purview of section 29A of the Code is not qualified for submission of a resolution plan. It accordingly advised that the objections would be considered by the CoC for an independent decision in regard to application of section 29A.
