In the light of Insolvency and Bankruptcy Code, 2016, indicate whether the following persons are eligible to be a Resolution Applicant for ABC Ltd. which is undergoing Corporate Insolvency Resolution Process, based on an
CS Professional · Corporate Restructuring, Valuation and Insolvency · PYQS · December 2021
In the light of Insolvency and Bankruptcy Code, 2016, indicate whether the following persons are eligible to be a Resolution Applicant for ABC Ltd. which is undergoing Corporate Insolvency Resolution Process, based on an application for insolvency resolution made by PQR Bank Ltd. A has a loan account with PQR Bank Ltd, which has been classified as non-performing assets 6 months back, in terms of guidelines issued by Reserve Bank of India. A is yet to pay all the overdue amount.
Answer & Explanation:
In terms of Clause (c) of Sec 29A, if at the time of submission of resolution plan Mr A has an account which has been classified as non performing asset and if he is yet to repay the entire overdue amount of the loan account, he can't be an eligible resolution applicant. This prohibition does not apply to a financial entity who is not a related party of the corporate debtor.
Topics: Insolvency and Bankruptcy Code, 2016
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