https://www.taxtmi.com/caselaws?id=760808 NCLAT Principal Bench set aside the Adjudicating Authority's order rejecting a resolution plan for an MSME-registered corporate debtor. The Authority had deemed the resolution applicant ineligible under Section 29A(c) of IBC, finding that the applicant's managing director was also the promoter and in control of the corporate debtor whose account became non-performing. However, NCLAT held that Section 240A of IBC, which provides exemptions for MSMEs, applied since the corporate debtor was registered as MSME before plan submission. The ineligibility under Section 29A(c) could not be invoked when Section 240A was applicable. The resolution plan was approved and appeal allowed. en-us Fri, 25 Oct 2024 00:00:00 +0530 Mon, 28 Oct 2024 08:31:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=760808 NCLAT Principal Bench set aside the Adjudicating Authority's order rejecting a resolution plan for an MSME-registered corporate debtor. The Authority had deemed the resolution applicant ineligible under Section 29A(c) of IBC, finding that the applicant's managing director was also the promoter and in control of the corporate debtor whose account became non-performing. However, NCLAT held that Section 240A of IBC, which provides exemptions for MSMEs, applied since the corporate debtor was registered as MSME before plan submission. The ineligibility under Section 29A(c) could not be invoked when Section 240A was applicable. The resolution plan was approved and appeal allowed. Case-Laws IBC Fri, 25 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=760808