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Issues: Whether the Successful Resolution Applicant (SRA) is ineligible as a "related party" of the Corporate Debtor within the meaning of Section 5(24)(h) of the Insolvency and Bankruptcy Code, 2016, and therefore barred from submitting a Resolution Plan.
Analysis: The Tribunal examined the non-binding term sheet dated 09.06.2022 and the surrounding facts. The term sheet was expressly subject to contract and contained condition precedents; no definitive investment agreement was executed, no shares were allotted, and the Rs. 10,00,000 deposited by the investor was refunded to the State Bank of India before the Section 7 petition. The Adjudicating Authority in IA No.5201 of 2024 had earlier considered the same material and held that, in absence of a definitive agreement and given refund of the deposit, the ingredients of Section 5(24)(h) (advice, directions or instructions by the investor to the company's directors/managers) were not established. That earlier finding was not challenged and has attained finality. The Tribunal found no error in the Adjudicating Authority's subsequent approval of the Resolution Plan in IA No.30 of 2024.
Conclusion: The SRA is not a "related party" within the meaning of Section 5(24)(h) of the Insolvency and Bankruptcy Code, 2016; the appeal is dismissed and the Adjudicating Authority's approval of the Resolution Plan is upheld (decision in favour of Respondent).
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