The Central Government, last week amended the Insolvency and Bankruptcy Code, 2016 as per which, the Code is applicable to personal guarantors to corporate debtors.
The amendment has retrospective effect and it shall be deemed to have come into force on the 23rd day of November 2017.
It inserts a new section 29A specifying persons not eligible to be resolution applicant. As per the newly added section, Wilful defaulter, NPA Account holders, disqualified directors, An undischarged insolvent, convicts, Prohibited by the Securities and Exchange Board of India (SEBI) from trading in securities or accessing the securities markets etc are not eligible to be resolution applicant.
Subscribe Taxscan Premium to view the Judgment
