Prospective nature of section 29A of the Insolvency and Bankruptcy Code, 2016

In a recent decision delivered by the Mumbai Bench of the National Company Law Tribunal, the Judicial Member had occasion to consider whether section 29A of the Insolvency and Bankruptcy Code, 2016 (as introduced by an amendment act) applies to ongoing proceedings.

After evaluating the provisions of the amendment act as well as judicial promouncements on the issue, the Hon'ble Tribunal has ruled that thee amendment act is not retrospective in nature - and will thus only apply to those companies for which insolvency proceedings commenced after the 23rd of November, 2017 (i.e the date from which the amendment is stated to have come into force).

This judgment recently featured in the news, as reported by Varun Marwah for Barandbench.com - https://barandbench.com/nclt-section29a-ineligibility-doesnt-apply-to-ongoing-insolvency-proceedings/

(DISCLAIMER: I appeared on behalf of the resolution applicant and argued in favour of the sanction of the resolution plan)