# In the matter of Insolvency and Bankruptcy Board of India Vs. Wig Associates Pvt. Ltd. & Ors. CA (AT) No. 415-2018

> NCLAT judgment dated 2018-08-01. Citation: TCN-2018-NCLAT-00171. The Insolvency and Bankruptcy Board of India (IBBI) filed an appeal against an order dated…

- **Court:** NCLAT
- **Order date:** 1 Aug 2018
- **Citation:** TCN-2018-NCLAT-00171
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/insolvency-and-bankruptcy-board-of-india-vs-wig-associates-pvt-ltd-ors-ca-58a79c14

## Summary

### Background

The Insolvency and Bankruptcy Board of India (IBBI) filed an appeal against an order dated June 4, 2018, by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench. The order pertained to findings in paragraphs 7 and 8 regarding the resolution plan. The core issue revolves around the eligibility of Mr. Mahendra Wig, the Resolution Applicant, considering his relationship with the Promoter Directors of the Corporate Debtor Company and the applicability of Section 29-A of the Insolvency and Bankruptcy Code (I&B Code). The Adjudicating Authority had raised a legal question regarding whether Mr. Wig's resolution plan could be entertained or admitted after the introduction of Section 29-A of the I&B Code.

## Facts

The Insolvency and Bankruptcy Board of India (IBBI) filed an appeal against the Adjudicating Authority's order dated June 4, 2018. The order related to the resolution plan submitted by Mr. Mahendra Wig. Mr. Wig is related to the Promoter Directors of the Corporate Debtor Company. The Adjudicating Authority raised a legal question about the admissibility of Mr. Wig's resolution plan after the introduction of Section 29-A of the Insolvency and Bankruptcy Code (I&B Code). Section 29-A disqualifies 'connected persons' from submitting resolution plans. The ordinance introducing Section 29-A was promulgated on November 23, 2017, and later became an amendment on January 18, 2018. The resolution plan was approved by 100% vote of the CoC. The IBBI's appeal was based on the

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## Issues and analysis

### Issue 1: Whether the finding of the Adjudicating Authority is the correct interpretation of Section 29A …

**Ratio:** The settled rule of interpretation of a statute is that any amendment affecting the legal

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**Reasoning:** The court refers to several judgments to establish the principle that amendments to

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**Interpretation:** Section 29A of the I&B Code, which disqualifies certain individuals from

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**Application:** The court applies the principle of prospective application to Section 29A.

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Insolvency and…
- **Respondents:** Wig Associates…

## Timeline

- **2017-11-23 — Ordinance Pro…**: An Ordinance was promulgated under the title 'THE INSOLVENCY AND BANKRUPTCY CODE…
- **2018-01-18 — Ordinance Becomes…**: The Ordinance took the shape of 'Amendment' as 'THE INSOLVENCY AND BANKRUPTCY CODE…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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