Promoter Of A Corporate Debtor Not Disqualified From Submitting A Resolution Plan Where MSME Registration Certificate Is Obtained

On November 29, 2023, the Supreme Court of India in the case of Hari Babu Thota v. [None] [Civil Appeal No. 4422/2023] held that a promoter of a Corporate Debtor shall not be disqualified under Section 29A of the Insolvency and Bankruptcy Code, 2016 ("Code") from submitting a resolution plan even where MSME registration certificate is obtained post commencement of the corporate insolvency resolution process ("CIRP") but prior to submission of resolution plan. The Hon'ble Supreme Court overruled the judgement of the Hon'ble National Company Law Appellate Tribunal, New Delhi ("NCLAT") in Digamber Anandrao Pingle v. Shrikant Madanlal Zawar,[Company Appeal (AT) (Ins) No. 43-43A of 2021], wherein the NCLAT had observed that where application for MSME certificate is made after commencement of CIRP, the same cannot tide over ineligibility under Section 29A of the Code.