2019 (4) TMI 2145 - HC - Insolvency and Bankruptcy

Resolution Plan Submission Permitted; Willful Defaulter Designation Found Unjustified and Improper by Court.

The HC permitted petitioner no.1 to engage in the resolution process by submitting a plan to respondent no.1. The court found respondent no.2's ... Wilful Defaulter - Participation in the process by offering resolution plan to respondent no.1 - HELD THAT:- The petitioner no.1 who had forwarded expression of interest, has been accepted in the resolution process. However, to scuttle the chance of the petitioner to participate in the process, the respondent no.2 has declared the petitioner no.2 and 3 as willful defaulter. Thereby automatically disqualifying the petitioner no.1 from any further participation - According to the petitioner, the action on the part of the respondent no.2 was not only deliberated, but also not supported by any provision. The petitioner no.1 be permitted to participate in the process by offering resolution plan to respondent no.1. The Gujarat High Court allowed petitioner no.1 to participate in the resolution process by offering a plan to respondent no.1. Respondent no.2's declaration of petitioner no.2 and 3 as willful defaulters was seen as an attempt to disqualify petitioner no.1 without proper basis.