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Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + AT Insolvency and Bankruptcy - 2021 (7) TMI AT This

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2021 (7) TMI 456 - AT - Insolvency and Bankruptcy


Issues:
Appeal against liquidation order, rejection of resolution plan, applicability of Section 29A of IBC, allegations against ex-promoter, MSME status, pending application under Sections 43, 66, and 65 of IBC.

Analysis:
1. The appeal was filed against the order directing liquidation of the Corporate Debtor and rejecting the appellant's resolution plan, claiming the Corporate Debtor's MSME status and the appellant's eligibility to file a resolution plan.
2. The appellant detailed the initiation of CIRP, efforts to settle under Section 12(A) of IBC, and submission of a resolution plan, which was ultimately objected to by the Resolution Professional.
3. The Adjudicating Authority observed that the appellant was hit by Section 29A of IBC due to fraudulent transactions and failure to pay amounts promised earlier, leading to liquidation proceedings.
4. The appellant contended that the liquidation order was premature, as an application under Sections 43, 66, and 65 of IBC was pending, challenging the observations made under Section 29A.
5. The tribunal acknowledged the appellant's settlement efforts but noted the lack of CoC approval for the resolution plan within the prescribed time, leading to the liquidation order.
6. The tribunal addressed the appellant's MSME certificate obtained during CIRP without IRP/RP consent, citing the need to prevent backdoor entries post-CIRP initiation.
7. The tribunal disregarded the observations under Section 29A, emphasizing the pending application's formal decision and rejected the claim of MSME status, declining to direct the Liquidator based on the appellant's assertions.
8. The appeal was disposed of without setting aside the impugned order, emphasizing the need for a formal decision on the pending application and ignoring baseless allegations against the Resolution Professional.

 

 

 

 

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