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. B who has executed a guarantee to PQR Bank Ltd. towards dues payable by ABC Ltd. and the guarantee has been invoked by PQR Bank Ltd. and remains unpaid.
Answer & Explanation:
In terms of Clause (h) of Sec 29A, if Mr B has executed a guarantee in favour of PQR Bank towards dues payable by ABC Ltd, and if Mr B hasn't paid the invoked guarantee amount, he will not be eligible to be a Resolution Applicant for ABC Ltd.
Topics: Insolvency and Bankruptcy Code, 2016
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