PROMOTERS BARRED UNDER SECTION 29A, INSOLVENCY AND BANKRUPTCY CODE, 2016, SHALL BE BARRED TO PRESENT A SCHEME OF COMPROMISE OR ARRANGEMENT UNDER SECTION 230 OF THE COMPANIES ACT, 2013

In the matter of Arun Kumar JagatramkaVs Jindal Steel & Power Ltd. &Anr. (2021) SCC OnLine SC 220, the Hon’ble Supreme Court had held that the promoters ineligibleunder Section 29A, Insolvency and Bankruptcy Code, shall also be barredfrom presenting a scheme of compromise or arrangement under Section 230 of the Companies Act, 2013 and accordingly, the erstwhile Promoters of a Company under Insolvency and subsequent liquidation are to be non-suited from presenting a scheme of compromise or arrangement.