# In the matter of Aanchal Ispat Limited

> NCLT judgment dated 2024-02-29. Citation: TCN-2024-NCLT-02312. The case involves an application (I.A. (IB) No. 68/KB/2024) filed in an ongoing Corporate…

- **Court:** NCLT
- **Order date:** 29 Feb 2024
- **Citation:** TCN-2024-NCLT-02312
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aanchal-ispat-limited-742963b8

## Summary

### Background

The case involves an application (I.A. (IB) No. 68/KB/2024) filed in an ongoing Corporate Insolvency Resolution Process (CIRP) against Aanchal Ispat Limited (Corporate Debtor) under C.P. (IB) No. 1518/KB/2020. The applicant, Mr. Mukesh Goel, a suspended promoter of Aanchal Ispat Ltd, sought relaxation of eligibility criteria (Net Worth and EMD amount) to submit an Expression of Interest (Eol) for the Corporate Debtor, arguing that the Corporate Debtor is an MSME and he, as a promoter, should be granted exemptions under Section 240A of the Insolvency and Bankruptcy Code (IBC). The Resolution Professional (RP) and the Committee of Creditors (CoC) opposed the relaxation, citing the need to test the financial solvency of the applicant and maximize the value of the

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## Facts

Aanchal Ispat Limited is undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. Mr. Mukesh Goel, the suspended promoter of Aanchal Ispat Ltd, filed an application seeking relaxation of eligibility criteria, specifically the Net Worth and Earnest Money Deposit (EMD) requirements, to enable him to submit an Expression of Interest (Eol) for the company's resolution. Aanchal Ispat Limited is registered as a Medium Enterprise under the MSMED Act. The Resolution Professional (RP), CA Santanu Brahma, and the Committee of Creditors (CoC) opposed the relaxation, arguing that the EMD is crucial to test the financial solvency of potential resolution applicants and that the CoC has the prerogative to decide on such exemptions. The

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## Issues and analysis

### Issue 1: Whether the eligibility criteria pursuant to the ‘Net Worth' and ‘EMD amount’ can be relaxed/waived …

**Ratio:** Section 240A of the I&B Code provides certain relaxations to MSME promoters, giving

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**Reasoning:** The court considered the arguments from both sides, examining Section 29A and Section

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**Interpretation:** Section 29A of the I&B Code debars certain categories of persons from being

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**Application:** The court allowed the relaxation and dispensation with the eligibility criteria

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## Parties

- **Judges:** BIDISHA BA…; SHRI. D.…; +1 more
- **Appellants:** Aldous Commodities…
- **Respondents:** Aanchal Ispat…; CA Santanu…
- **Advocates:** Shaunak…; Manas…; +4 more

## Timeline

- **2020-01-01 — C.P. (IB…**: C.P. (IB) No.…
- **2023-09-12 — 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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