DHANANJAYA Y.CHANDRACHUD,J. - (1.) This judgment has been divided into the following sections to facilitate analysis: A. Factual Background A.1 Civil Appeal 9664 of 2019 A.2 Civil Appeal 2719 of 2020 A.3 Liquidation Process Regulations, 2016 A.4 Article 32 Petition B. Issues C. Submissions D. Analysis of the Legal Framework D.1 Ineligibility during the resolution process and liquidation D.2 Interplay : IBC liquidation and Section 230 of the Act of 2013 D.3 The 'Clean Slate' D.4 Constitutional Validity of Regulation 2B - Liquidation Process Regulations E. Epilogue F. Conclusion A. Factual Background A.1 Civil Appeal 9664 of 2019[1] 1. By its judgment dated 24 October 2019, the National Company Law Appellate Tribunal[2] held that a person who is ineligible under Section 29A of the Insolvency Bankruptcy Code, 2016[3] to submit a resolution plan, is also barred from proposing a scheme of compromise and arrangement under Section 230 of the Companies Act, 2013[4]. The judgment was rendered in an appeal[5] filed by Jindal Steel and Power Limited[6], an unsecured creditor of the corporate debtor, Gujarat NRE Coke Limited[7]. The appeal was preferred against an order passed by the National Company Law Tribunal[8] in an application[9] under Sections 230 to 232 of the Act of 2013, preferred by Mr Arun Kumar Jagatramka, who is a promoter of GNCL. The NCLT had allowed the application and issued directions for convening a meeting of the shareholders and creditors. In its decision dated 24 October 2019, the NCLAT reversed this decision and allowed the appeal by JSPL. The decision of the NCLAT dated 24 October 2019 is challenged in the appeal before this Court. [1] "First Appeal" [2] "NCLAT" [3] "IBC" [4] the "Act of 2013" [5] Company Appeal (AT) No. 221 of 2018 [6] "JSPL" [7] "GNCL" [8] "NCLT" [9] C.A. (CAA) No. 198/KB/2018
(2.) Mr Arun Kumar Jagatramka, assails the order dated 24 October 2019 of the NCLAT, inter alia, on the ground that Section 230 of the Act of 2013 does not place any embargo on any person for the purpose of submitting a scheme. According to the appellant, in the absence of a disqualification, the NCLAT could not have read the ineligibility under Section 29A of the IBC into Section 230 of the Act of 2013. This would, in the submission, amount to a judicial reframing of legislation by the NCLAT, which is impermissible.
(3.) Before we advert to the submissions of the counsels on questions of law, it will be useful to outline the salient facts of this dispute to understand the contours of the controversy. GNCL, the corporate debtor, moved an application under Section 10 of the IBC before the NCLT for initiating the Corporate Insolvency Resolution Process[10]. The application was admitted on 7 April 2017. [10] "CIRP" or "resolution process" ;