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TMI Blog2019 (11) TMI 1668X X X X Extracts X X X X X X X X Extracts X X X X ..... y Reserve Bank of India, cannot be accepted. The schemes for restructuring are in no way merged with the Code. The provisions of Section 230 (2) (c) of the Companies Act, 2013 are, consequently, applicable in the present case. There is no averment that the conditions are satisfied in the present case. Application dismissed. - CA No. 1118/2019 and CA (CAA) No. 35/Chd/Chd/2019 - - - Dated:- 28-11-2019 - M.M. Kumar, C.J. (President) and Pradeep R. Sethi, Member (T), JJ. For the Appellant: Alok Kumar Jain, Advocate For Liquidator: Kamal Satija, Advocate ORDER 1. CA (CAA) No. 35/Chd/Chd/2019 is filed by Shri Ashish Mohan Gupta being the suspended member of the Board of Director and Promoter Director of all the three ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has stated that he is the suspended member of the Board of Director-cum-Promoter/Shareholder of all the three companies (page 40 of the application). Shri Ashish Mohan Gupta is ineligible under Section 29A of the Insolvency and Bankruptcy Code, 2016 (Code) to be a Resolution Applicant. Therefore, the present application for amalgamation, compromise and arrangement cannot be accepted. 4. Alternatively, the application deserves to be dismissed on the grounds discussed below. 5. We may add here that in para 4 of CA No. 1118/2019, it is stated that the process of execution of the amended Scheme of Amalgamation, Compromise and Arrangement involves re-calling of the liquidation order and subsequent thereto it is prayed that for the executi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... three companies would not be satisfied. 7. It has been contended by the learned counsel for the applicant companies that the instant Scheme is not a corporate debt restructuring scheme since there is no infusion of additional funds of the financial creditor or any other financial institution and moreover, the Reserve Bank of India has withdrawn the CDR, STR, S4A, JLF Scheme for restructuring of defaulted loans and has merged the same with the Insolvency and Bankruptcy Code, 2016 (Code). It is, therefore, submitted that the provisions of Section 230 (2) (c) of the Companies Act, 2013 are not per se attracted. 8. We find that the provisions of Section 230 (2) (c) of the Companies Act, 2013 reads as follows: 230(2)(c)-The Company or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the guidelines specified by Reserve Bank of India, cannot be accepted. Consequently, the contention that a corporate debt restructuring scheme necessarily involves infusion of additional funds by the financial creditor or any other financial institution cannot be accepted. Moreover, Annexure A-37 of CA No. 1118/2019 sought to be relied upon by the learned counsel for the applicant has reference to the Reserve Bank of India scrapping numerous loan restructuring programs prevalent among banks to restructure defaulted loans and make resolution of defaults time bound with the Insolvency and Bankruptcy Code becoming the main tool to deal with defaulters. The schemes for restructuring are, therefore, in no way merged with the Code. The provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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