Question

Under Section 29A of the Insolvency and Bankruptcy Code, 2016, which of the following persons is INELIGIBLE to submit a resolution plan?

Q: Answer-Under Section 29A of the Insolvency and Bankruptcy Code, 2016, which of the following persons is INE...

Explanation It was inserted by the Insolvency and Bankruptcy Code Amendment Act, 2018 to prevent wilful defaulters and unscrupulous promoters from regaining control of their companies through the backdoor of the resolution process. Under Section 29A, a person is ineligible to be a resolution applicant if, among other conditions, they are a promoter or in managementcontrol of the corporate debtor and their account or an account of a related party has been classified as an NPA for one year or more unless they pay off all outstanding dues including interest and charges before submitting the resolution plan.

A A financial creditor who has never defaulted on any loan

B A promoter of the corporate debtor who has an account classified as a Non-Performing Asset (NPA) for one year or more and has not paid off the outstanding debt

C An employee of the corporate debtor who wishes to form a consortium to submit a plan

D A foreign company incorporated outside India but having no outstanding dues to any Indian bank

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