The Court also analysed a series of judgments on Section 32A of IBC.
“The intention of the provision is to discover in such cases as to who are the real individuals or entities who are acting jointly or in concert and who have set up such a corporate vehicle for the purpose of submission of a resolution plan,” the Court stated.
It further highlighted the relevance of this principle in the Tata Steel BSL Ltd case where the corporate debtor was discharged even though the resolution plan was approved before Section 32A’s introduction.
The Court clarified the exceptions to such discharge under Section 32A, including when it comes to cases involving Micro, Small, and Medium Enterprises (MSMEs) or where resolution applicants fail to meet…
