The case involves an application (IA-4989/2023) filed under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, by the suspended Director of the Corporate Debtor, who is also a Prospective Resolution Applicant (PRA). The applicant seeks relief, arguing that the company is an MSME unit and should not be required to submit an Earnest Money Deposit (EMD) for submitting a Resolution Plan. The Corporate Debtor is an MSME unit, and the applicant is the promoter and suspended board director. The CIRP commenced on 06.06.2023. The Resolution Professional (RP) has called for Resolution Plans from PRAs with EMD/Bank Guarantee of Rs. 50,00,000/-. The applicant requested the RP and CoC to waive the EMD/BG, but the CoC declined to consider the request.
The Corporate Debtor is an MSME unit. The applicant is the promoter and suspended board director of the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) commenced on 06.06.2023. The Resolution Professional (RP) has called for Resolution Plans from Prospective Resolution Applicants (PRAs) with an Earnest Money Deposit (EMD) or Bank Guarantee of Rs. 50,00,000/-. The applicant, being the erstwhile Director of the Corporate Debtor, requested the RP and Committee of Creditors (CoC) to waive the EMD/BG. The CoC declined to consider the request in its sixth meeting. The applicant then approached the Tribunal seeking relief, relying on previous orders of NCLAT and NCLT, including the 'Blue Park Seafoods Private Limited' case, which emphasized the rationale
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The case involves an application (IA-4989/2023) filed under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, by the suspended Director of the Corporate Debtor, who is also a Prospective Resolution Applicant (PRA). The applicant seeks relief, arguing that the company is an MSME unit and should not be required to submit an Earnest Money Deposit (EMD) for submitting a Resolution Plan. The Corporate Debtor is an MSME unit, and the applicant is the promoter and suspended board director. The CIRP commenced on 06.06.2023. The Resolution Professional (RP) has called for Resolution Plans from PRAs with EMD/Bank Guarantee of Rs. 50,00,000/-. The applicant requested the RP and CoC to waive the EMD/BG, but the CoC declined to consider the request.
The Corporate Debtor is an MSME unit. The applicant is the promoter and suspended board director of the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) commenced on 06.06.2023. The Resolution Professional (RP) has called for Resolution Plans from Prospective Resolution Applicants (PRAs) with an Earnest Money Deposit (EMD) or Bank Guarantee of Rs. 50,00,000/-. The applicant, being the erstwhile Director of the Corporate Debtor, requested the RP and Committee of Creditors (CoC) to waive the EMD/BG. The CoC declined to consider the request in its sixth meeting. The applicant then approached the Tribunal seeking relief, relying on previous orders of NCLAT and NCLT, including the 'Blue Park Seafoods Private Limited' case, which emphasized the rationale
…The Corporate…
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