In Brief

The Supreme Court considered whether promoters of a corporate debtor in insolvency could present a resolution plan when the entity lacked micro, small and medium enterprise (MSME) status at the time insolvency proceedings commenced. The Court held that the relevant date for assessing MSME status and eligibility under Section 29A is the date of submitting the resolution plan, not the date proceedings began. This ensures MSMEs can obtain such status before plan submission and benefit from exemptions intended to prevent liquidation and preserve employment. The Court set aside the National Company Law Tribunal's dismissal of the plan.

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