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TMI Blog2021 (3) TMI 906X X X X Extracts X X X X X X X X Extracts X X X X ..... nistry of Corporate Affairs shall arrive at a consensus and file a common affidavit after consulting with the officials of the Reserve Bank of India, on the said issue. List on 19th May, 2021. Interim orders to continue in the meantime. - W.P.(C) 9537/2020, CM APPLs. 30583/2020 & 4927/2021 - - - Dated:- 18-3-2021 - JUSTICE PRATHIBA M. SINGH Petitioner Through: Mr. Sandeep Sethi, Sr. Advocate with Mr. Dhruv Dewan, Ms. Harshita Choubey Ms. Chandni Ghatak, Advocates (M-9999776655) Respondents Through: Mr. Tushar Mehta, SG for with Mr. Ramesh Babu MR, Ms. Manisha Singh, Ms. Sanya Panjwani Ms. Tanya Chowdhary, Advocates for R-2/RBI. Mr. Ravi Prakash, CGSC with Mr. Jitendra Kumar Tripathi, GP (M-9990952670) Prathib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he implementation of the resolution plan; or (iii) the holding company, subsidiary company, associate company or related party of a person referred to in clauses (i) and (ii): [Provided that nothing in clause (iii) of this Explanation I shall apply to a resolution applicant where such applicant is a financial entity and is not a related party of the corporate debtor: Provided further that the expression related party shall not include a financial entity, regulated by a financial sector regulator, if it is a financial creditor of the corporate debtor and is a related party of the corporate debtor solely on account of conversion or substitution of debt equity shares or instruments convertible into equity shares [or completion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nted a certificate a registration under sub-section (4) of section 3, shall commence or carry on, without prior approval of the Reserve Bank, any business other than that of securitisation or asset reconstruction; Provided that a [asset reconstruction company] which is carrying on, on or before the commencement of this Act, any business other than the business of securitisation or asset reconstruction or business referred to in sub-section (1), shall cease to carry on any such business within one year from the date of commencement of this Act. Explanation . For the purposes of this section, [asset reconctruction company] or [asset reconstruction company] does not include its subsidiary. 3. This issue has arisen in the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore submitting a Resolution Plan, and since the said approval was not obtained by the Petitioner, the Resolution Plan submitted by the Petitioner is invalid in law. 5. Mr. Prakash, ld. Standing Counsel for the Union of India, submits that the decision on this issue involves two Ministries, namely, the Department of Financial Services under the Ministry of Finance, and the Ministry of Corporate Affairs. He therefore seeks time to file the stand of the two Ministries on record. 6. The issues raised in this petition are of importance inasmuch as they would involve the reconciliation of the provisions of the SARFAESI Act and the IBC set out above. Considering that the role of Asset Reconstruction Companies in resolution/liquidation proce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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