Sec 29A of ibc

Is Merely being a promoter itself disqualify person from submitting a insolvency resolution application?

A resolution applicant, as defined under section 5(25) of the Code mean any person who submits a resolution plan to the resolution professional. Hence, a resolution applicant might have been any person- a creditor, a promoter, a prospective investor, an employee, or any other person. A promoter if he is not disqualified as per section 29A can be resolution applicant. The NCLAT in the case of Sreeram E. Techno School Private Limited v. Beans and More Hospitality Private Limited Through R.P. Prabhjit Singh Soni stated that, as the resolution applicant, who was also a promoter of the Corporate Debtor, doesn’t fall within the restrictive ambit of Section 29A of the IBC, it can be allowed to file its resolution plan in the CIRP of the Corporate Debtor.

Answer given by Shubhamm Sir at 15-Jan-2023 02:04 AM