Person barred u/s 29A of the IBC to submit a resolution plan, is also barred u/s 230 of the Companies Act, 2013, says SC

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Last updated: 05 April 2021
Quick Summary
The Supreme Court has ruled that a person who is ineligible to submit a resolution plan under Section 29A of the Insolvency and Bankruptcy Code (IBC), 2016, is also prohibited from proposing a scheme of compromise or arrangement under Section 230 of the Companies Act, 2013. This decision clarifies the interplay between the two acts, ensuring that individuals disqualified under insolvency proceedings cannot circumvent these restrictions through company law mechanisms.

Court :
Supreme Court of India

Brief :
By its judgment dated 24 October 2019, the National Company Law Appellate Tribunal2 held that a person who is ineligible under Section 29A of the Insolvency Bankruptcy Code, 20163 to submit a resolution plan, is also barred from proposing a scheme of compromise and arrangement under Section 230 of the Companies Act, 20134.

Citation :
Civil Appeal No. 9664 of 2019

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