The Supreme Court has held that the Promoter of a Corporate Debtor is eligible to submit a resolution plan in terms of Section 240A of the Insolvency and Bankruptcy Code, 2016 (IBC), even if the Corporate Debtor was registered as Micro Small Medium Enterprise (MSME) after commencement of Corporate Insolvency Resolution Process (CIRP).
The Bench comprising Justice Sanjay Kishan Kaul and Justice Sudhanshu Dhulia, has set aside an order passed by the National Company Law Appellate Tribunal (NCLAT), wherein the Promoter of a MSME Corporate Debtor was declared ineligible to submit a plan on the premise that the MSME certificate was obtained post commencement of CIRP.
BACKGROUND FACTS
On 06.04.2021, Shree Aashraya Infra-Con Limited (Corpor…
Read the full article at: https://www.livelaw.in/supreme-court/supreme-court-ruling-promoter-resolution-plan-corporate-debtor-msme-registered-section-240a-ibc-244480