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 as in (iii) above and the guarantee has been invoked and remains unpaid, but ABC Ltd is a Micro, Small and Medium Enterprise.
Answer & Explanation:
Section 240A of the IBC stipulates that Clause (h) of Section 29A shall not apply to the resolution applicant (Mr B) in respect of Corporate Insolvency Resolution Process (CIRP) of ABC Ltd, if ABC Ltd is a Micro, Small and Medium Enterprise. In such a case, Mr B can be a resolution applicant for ABC Ltd.
Topics: Insolvency and Bankruptcy Code, 2016
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