In Brief
MBL Infrastructures Limited's promoter submitted a resolution plan despite having executed personal guarantees that were invoked by creditors before insolvency commenced. The Supreme Court held that while Section 29A(h) technically bars such guarantors from submitting resolution plans, the Court exercised discretion not to disturb the plan given exceptional circumstances: the plan was approved by 78.50% of creditors (exceeding statutory thresholds), backed by techno-economic viability reports, in operation since 2018, and benefiting 23,000 shareholders and thousands of employees. The Court balanced strict statutory interpretation against the Code's paramount objective of corporate revival, holding that dissenting creditors faced no prejudice as their liquidation value was secured.
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