Eligibility /Ineligibility of Successful Resolution Applicant u/s 29A of IBC must be based on Date of Submission of Resolution Plan: NCLAT

The National Company Law Appellate Tribunal (NCLAT) ruled that the eligibility of a successful resolution applicant under Section 29A of the Insolvency and Bankruptcy Code (IBC) must be determined based on the date of submission of the resolution plan. This decision came in a case where the eligibility of Bishwanath Traders & Investment Ltd. was challenged after their resolution plan was approved by the Committee of Creditors (CoC). The tribunal held that any changes in the applicant’s status after the submission date are irrelevant for determining eligibility. The ruling emphasizes the importance of adhering to the statutory timeline and provides clarity on the application of Section 29A, which aims to prevent defaulting promoters from regaining control of their companies. This decision reinforces the principle that the resolution process should be transparent and fair, ensuring that only eligible applicants can participate in the insolvency resolution process.