# In the matter of Athar Zia
Vs. 
Anup Sood Company Appeal (AT) (Insolvency) No. 427 of 2022

> NCLAT judgment dated 2022-05-19. Citation: TCN-2022-NCLAT-00475. This appeal was filed against the order dated 21.02.2022 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 19 May 2022
- **Citation:** TCN-2022-NCLAT-00475
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/athar-zia-vs-anup-sood-company-appeal-9f8d8316

## Summary

### Background

This appeal was filed against the order dated 21.02.2022 passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi, Principal Bench, which allowed the Resolution Professional's application for the initiation of liquidation. The appellant, a suspended director of the corporate debtor, challenged the order, claiming eligibility to submit an Expression of Interest and Resolution Plan.

## Facts

Athar Zia, the appellant and a suspended director of the Corporate Debtor, filed an appeal against the order dated 21.02.2022 passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi, Principal Bench, which allowed the initiation of liquidation. Zia claimed eligibility to submit an Expression of Interest and Resolution Plan. The Resolution Professional filed a liquidation application. The Bank of India declared Zia a willful defaulter, but this declaration was initially set aside by the Delhi High Court. However, the High Court's order was interpreted as merely setting aside the communication and directing the Bank to provide a copy of the Identification Committee report to Zia, allowing him to submit a reply for the Review Committee's

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## Issues and analysis

### Issue 1: Whether the Appellant was eligible to submit an …

**Ratio:** Section 29A of the Insolvency and Bankruptcy Code (IBC) disqualifies individuals who are

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**Reasoning:** The court reasoned that the appellant had been declared a wilful defaulter by the Bank of

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**Interpretation:** Section 29A is interpreted strictly to prevent individuals who have engaged in

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**Application:** The court applied the ratio of Section 29A to the facts, finding that the

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## Parties

- **Judges:** Ashok Bh…; Alok Sriv…
- **Appellants:** Athar…
- **Respondents:** Basic India…; Anup…

## Timeline

- **2018-09-18 — Bank of India Declares Appellant as Wilful…**: Bank of India issued a communication…
- **2018-10-12 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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