De Facto Control Under MoU Leads to Ineligibility for Resolution Plan Due to Section 29A(c) of IBC.

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....Scope and ambit of Section 29A (c) of IBC - Disqualification to submit the Resolution Plan u/s 29A - The Tribunal observed that, Section 29A, sub-section (c) does, not only disqualify, those who were in management and control of the Corporate Debtor at the time when its account was declared NPA, but also disqualifies those, who were in management and control of the Corporate Debtor and in close proximity of time, before submission of Resolution Plan, who failed to clear the debts of the Corporate Debtor. - The NCLAT analyzed the MoU and subsequent actions by the appellant, concluding that the appellant had de facto control over the corporate debtor, including the right to nominate directors and make significant management decisions. This control started from the date of the MoU, making the appellant ineligible under Section 29A.....