TaxTMI 
TaxTMI 
Persons not eligible to be resolution applicant [Section 29A ]
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....h person is a promoter, classified as non-performing asset in accordance with * The guidelines of the Reserve Bank of India issued under the Banking Regulation Act, 1949 or * The guidelines of a financial sector regulator issued under any other law for the time being in force, and * at least a period of one year has lapsed from the date of such classification till the date of commencement of the corporate insolvency resolution process of the corporate debtor: * Exception of this sub clause * 1. the person shall be eligible to submit a resolution plan if such person makes payment of all overdue amounts with interest thereon and charges relating to non-performing asset accounts before submission of resolution plan; *....
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....hall not apply to a person after the expiry of a period of two years from the date of his release from imprisonment: * This clause shall not apply in relation to a connected person referred to in clause (iii) of Explanation I; * (e) is disqualified to act as a director under the Companies Act, 2013; * Exception:- this clause shall not apply in relation to a connected person referred to in clause (iii) of Explanation I; * (f) is prohibited by the Securities and Exchange Board of India from trading in securities or accessing the securities markets; * (g) has been a promoter or in the management or control of a corporate debtor in which a preferential transaction, undervalued transaction, extortionate credit transaction or frau....
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.... of the business of the corporate debtor during the implementation of the resolution plan; or * (iii) the holding company, subsidiary company, associate company or related party of a person referred to in clauses (i) and (ii): * Provided that nothing in clause (iii) of Explanation I shall apply to a resolution applicant where such applicant is a financial entity and is not a related party of the corporate debtor: * Provided further that the expression "related party" shall not include a financial entity, regulated by a financial sector regulator, if it is a financial creditor of the corporate debtor and is a related party of the corporate debtor solely on account of conversion or substitution of debt into equity shar....
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.... of India; * (f) such categories of persons as may be notified by the Central Government. Important Notification & Circular * Strengthen the due-diligence responsibilities of Resolution Professionals (RPs) with respect to Section 29A of the Insolvency and Bankruptcy Code (IBC) [Circular No. IBBI/CIRP/88/2025 dated 18-11-2025 ] Relevant Case Law * Arcelormittal India Pvt. Ltd. Vs. Satish Kumar Gupta and Ors. [ 2018 (10) TMI 312 ] Dated 04.10.2018 * the Supreme Court held that Section 29A is a de facto as opposed to a de jure position of persons mentioned therein. This is a typical see through provision so that one can see persons who are actually in control, whether jointly or in concert. A purposeful and contextual inter....
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....eme. The same rationale which permeates the resolution process under Chapter II (by virtue of the provisions of section 29A) permeates the liquidation process under Chapter III (by virtue of the provisions of section 35(1)(f)). * Sandip Kumar Bajaj & Anr. Vs. State Bank of India & Anr. [ 2020 (9) TMI 844 ] HC, Calcutta Dated 15.09.2020 * Section 29A or section 31 would not provide a shield against the operation of section 14(3)(b) of the Code and that CD/Promoter would not come under the immunity blanket of section 14 as the same is contrary to the law governing CIRP and RBI guidelines. * State Bank of India Vs. Anuj Bajpai [ 2020 (3) TMI 705 ] NCLAT Dated 18.11.2019 * The NCLAT held that if it comes to the notice of the liqui....