JUDGMENT

Prathiba M. Singh, J. - The present petition raises an important issue as to the role of an Asset Reconstruction Company under the Insolvency and Bankruptcy Code (hereinafter, IBC ), in the context of the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter SARFAESI Act ).

2. Under the IBC, sub clause (d) of Explanation II r/w the Provisos to Explanation 1, under section 29A(j), in effect, does not prohibit an Asset Reconstruction Company from submitting a resolution plan. On the other hand, under Section 10 of the SARFAESI Act, for an Asset Reconstruction Company to conduct any business apart from securitization or assets reconstruction, prior approval of the Reserve Bank of India is required. The said two provisions are set out below:

"Insolvency and Bankruptcy Code

"29A. A person not be eligible to be resolution applicant -- A person shall not be eligible to submit a resolution plan, if such person, or any other person acting jointly or in concert with such person -

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(j) has a connected person not eligible under clauses (a) to (i).

[Explanation I] For the purposes of this clause, the expr