The case involves appeals against orders of the National Company Law Appellate Tribunal (NCLAT) and a writ petition challenging the constitutional validity of Regulation 2B of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. The central issue revolves around whether a person ineligible under Section 29A of the Insolvency and Bankruptcy Code (IBC) can propose a scheme of compromise and arrangement under Section 230 of the Companies Act, 2013, during the liquidation of a corporate debtor under the IBC. The NCLAT had held that such ineligible persons are barred from proposing such schemes. The appellant argues that Section 230 of the Companies Act, 2013 does not place any embargo on any person for the purpose of submitting a scheme.
Gujarat NRE Coke Limited (GNCL), the corporate debtor, faced Corporate Insolvency Resolution Process (CIRP) after an application under Section 10 of the IBC was admitted on April 7, 2017. Arun Kumar Jagatramka, a promoter of GNCL, submitted a resolution plan on November 1, 2017, which was to be voted on in a meeting scheduled for November 23-24, 2017. However, the IBC was amended, inserting Section 29A, which provided a list of ineligible resolution applicants, effective from November 23, 2017. Due to the insertion of Section 29A, Mr. Jagatramka became ineligible to submit a resolution plan. No further resolution plan was approved, leading to an NCLT order for liquidation on January 11, 2018. Mr. Jagatramka challenged this order before the NCLAT, which dismissed the
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Application under…
Arun Kumar Jagatramka…
The case involves appeals against orders of the National Company Law Appellate Tribunal (NCLAT) and a writ petition challenging the constitutional validity of Regulation 2B of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. The central issue revolves around whether a person ineligible under Section 29A of the Insolvency and Bankruptcy Code (IBC) can propose a scheme of compromise and arrangement under Section 230 of the Companies Act, 2013, during the liquidation of a corporate debtor under the IBC. The NCLAT had held that such ineligible persons are barred from proposing such schemes. The appellant argues that Section 230 of the Companies Act, 2013 does not place any embargo on any person for the purpose of submitting a scheme.
Gujarat NRE Coke Limited (GNCL), the corporate debtor, faced Corporate Insolvency Resolution Process (CIRP) after an application under Section 10 of the IBC was admitted on April 7, 2017. Arun Kumar Jagatramka, a promoter of GNCL, submitted a resolution plan on November 1, 2017, which was to be voted on in a meeting scheduled for November 23-24, 2017. However, the IBC was amended, inserting Section 29A, which provided a list of ineligible resolution applicants, effective from November 23, 2017. Due to the insertion of Section 29A, Mr. Jagatramka became ineligible to submit a resolution plan. No further resolution plan was approved, leading to an NCLT order for liquidation on January 11, 2018. Mr. Jagatramka challenged this order before the NCLAT, which dismissed the
…Application under…
Arun Kumar Jagatramka…