FA, 2020 amendment increasing...
In the instant case, the applicants submitted a resolution plan, and the same plan was rejected by the Committee of Creditors (CoC) on grounds that applicants were ineligible to file a resolution plan.
However, the NCLT noted that the bidders were close relative to majority shareholders of the company's debtor and held a post of suspended directors.
Furthermore, they have been representing corporate debtors in CoC meetings. As a result, the applicants would fall within the purview of Section 29A as ineligible Resolution Applicant(s).
Since the applicant had neither replied to EOI nor did bother to deposit EMD and straightaway filed Resolution Plan on the last day just in order to stall Corporate Insolvency Resolution Process and approval of Resolution Plan submitted by other resolution applicants (s), rejection of their resolution plan by CoC was to be justified.
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