Ineligibility attaches at the time when the Resolution Plan is submitted by Resolution Applicant

Martin S.K. Golla Vs Wig Associates Pvt. Ltd. (NCLAT)

The Resolution Plan of Mr. Wig who was undisputedly a related party, was accepted on 20.04.2018 in the 4th COC (Annexure – 16 – Page 248). Section 29A hits the eligibility of the persons to submit a Resolution Plan if a person falls in any of the categories as mentioned in the Section. Appellant informed the Meeting that based on the OTS dated 27.03.2018, the Resolution Plan was being put up.

It is now settled law that ineligibility attaches at the time when the Resolution Plan is submitted by Resolution Applicant.

Once CIRP is commenced, provisions as existing on the day of admission of the Petition would continue to apply even in the face of amendment brought about by way of Section 29A, the reasons cannot be maintained. Even the Respondent No.2 — Bank of Baroda in its arguments (Diary No.25967) accepts that Section 29A of IBC was with effect from 23rd November, 2017 and the Hon’ble Supreme Court in “Swiss Ribbons vs. Union of India” (referred supra) has upheld the insertion of Section 29A with retrospective effect.

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