Punjab National Bank vs K. Periyasamy & Ors
- CitationCompany Appeal(AT)(Insolvency) No. 646 of 2019
Ratio decidendi
The rule this decision rests on
A financial creditor cannot raise, before the Adjudicating Authority or on appeal, an objection that a resolution applicant is ineligible under Section 29-A of the Insolvency and Bankruptcy Code, 2016, because that question is one for the Committee of Creditors to decide under Section 30(4). Section 29-A eligibility of a promoter, where the corporate debtor is a Micro, Small and Medium Enterprise, is not attracted, so the promoter cannot on that account be held ineligible.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI Company Appeal(AT)(Insolvency) No. 646 of 2019 IN THE MATTER OF: Punjab National Bank ...Appellant Vs K Periyasamy & Ors. ....Respondents Present: For Appellant: Ms. Khushboo Aggarwal, Mr. Vibhu Sharma and Mr. Rajesh Kumar Gautam, Advocates For Respondents: Mr. T.R. Sundaram, Advocate for Respondent Nos. 1 & 2. Mr. Manivannan, Advocate for RP
ORDER
30.08.2019 Learned Counsel for the Appellant- Punjab National Bank
while challenging the order dated 01.05.2019 submitted that the Adjudicating
Authority (National Company Law Tribunal), Single Bench, Chennai has directed
to consider the Resolution Plan submitted by the Promotor of the 'Corporate
Debtor' as it cannot be applicable being barred under Section 29-A of Insolvency
and Bankruptcy Code, 2016 (in short 'IBC').
However, we are not going to deliberate the issue as one 'Financial
Creditor' cannot take such plea in terms of Section 30(4) of IBC. The 'Committee
of Creditors' will have to take decision whether the Promotor is barred by any of
the parts of Section of 29-A of IBC which has not yet been taken. It is made clear
that if the 'Corporate Debtor' is a Micro, Small & Medium Enterprises (MSME),
the question of Section 29-A of IBC will not be attracted and as such with regard
to Promotor it cannot be held that they are ineligible.
Company Appeal(AT)(Insolvency) No. 646 of 2019 Page 1 of 2
For the reasons aforesaid, we are not inclined to interfere with the
impugned order dated 01.05.2019.
The appeal is dismissed. No cost.
[Justice S.J. Mukhopadhaya] Chairperson
[Justice A.I.S. Cheema] Member (Judicial)
(Kanthi Narahari) Member(Technical) Akc/Gc
Company Appeal(AT)(Insolvency) No. 646 of 2019 Page 2 of 2
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