ORDER :

The main grievance of the Appellant – ‘Shweta Vishwanath Shrike & Ors’ (employees of the ‘Corporate Debtor’) is that though the application under Section 12A of the Insolvency and Bankruptcy Code, 2016 (for short, ‘the I&B Code’) was filed at the instance of the ‘Promoter’ approved with more than 90% voting share of the ‘Committee of Creditors’, but it was rejected by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, Mumbai on the ground that the ‘Promoter’ not eligible to file the ‘resolution plan’ under Section 29A cannot file the application under Section 12A of the ‘I&B Code’. The impugned order dated 8th May, 2019 passed by the Adjudicating Authority has also been challenged by the ‘Andhra Bank’ in Company Appeal (AT) (Ins.) No. 612 of 2019 and the ‘Resolution Professional’ in Company Appeal (AT) (Ins.) No. 527 of 2019, but on different grounds.

2. Learned counsel appearing on behalf of the ‘Andhra Bank’ submits that Section 29A is not applicable to an application filed under Section 12A for withdrawal of application under Section 7 filed by Andhra Bank, if the Committee of Creditors accept the same with more than 90% of the voting share.

3. The ‘Resolution Professional’ has challenged the order dated 8th May, 2019 insofar it relates to observations made by the Adjudicating Authority against Mr. Sundaresh Bhat (‘Resolution Professional’).

4. Notices were issued on the Respondents. The ‘Andhra Bank’, lead Bank of the ‘Committee of Creditors’, has already filed an appeal and challenged the impugned order.

5. Mr. Nitesh Rana, learned counsel for ‘Enforcement Directorate’; Mr. Vishwanath, Advocate for ‘SEBI’; Mr. C. Balooni, Assistant Director, Ministry of Company Affairs and Mr. Sukant Vats, Public Prosecutor, Central Bureau of Investigation, appear and submit that they are investigating the matter against the ‘Corporate Debtor’ and its promoters, Directors and officers and role of other public servants.

6. Learned counsel appearing on behalf of the ‘Enforcement Directorate’ submit that the assets of the ‘Corporate Debtor’ are based on the proceeds of the crime and therefore, it cannot be given to any person.

7. The question arises for consideration in these appeals is whether Section 29A of the ‘I&B Code’ is applicable to the applicant, if he intends to withdraw the petition under Section 7 or 9, if the Committee of Creditor, approves a proposal with 90% voting share, in terms of Section 12A.

8. Section 29A relates to ineligibility of a”resolution applicant”, which is as follows:

"29A. Persons not 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—

(a) is an undischarged insolvent;

(b) is a wilful defaulter in accordance with the guidelines of the Reserve Bank of India issued under the Banking Regulation Act, 1949;

(c) has an account, or an account of a corporate debtor under the management or control of such person or of whom such person is a promoter, classified as non-performing asset in accordance with the guidelines of the Reserve Bank of India issued under the Banking Regulation Act, 1949 and at least a period of one year has lapsed from the date of such classification till the date of commencement of the corporate insolvency resolution process of the corporate debtor:

Provided that the person shall be eligible to submit a resolution plan if such person makes payment of all overdue amounts with interest thereon and charges relating to non-performing asset accounts before submission of resolution plan;

Provided further that nothing in this clause shall apply to a resolution applicant where such applicant is a financial entity and is not a related party to the corporate debtor.

Explanation I.—For the purposes of this proviso, the expression "related party" shall not include a financial entity, regulated by a financial sector regulator, if it is a financial creditor of the corp