Promoters, Shareholders of Corporate Debtor not barred under Sec 12A to settle insolvency, NCLAT

Aditi Singh September 10 2019
Register of Companies

The National Company Law Appellate Tribunal (NCLAT) has held that Section 29A of the Insolvency and Bankruptcy Code, 2016 is not applicable to an application under Section 12A and thus promoters and shareholders of the corporate debtor are entitled to settle the matter in terms of the Section.

The NCLAT has further held that if the assets of a Corporate Debtor are the result of "proceeds of crime", it would always be open to the ‘Enforcement Directorate to seize the assets in accordance . . .

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