India Tax & Regulatory
IBC/Insolvency Acquisition (Section 29A Eligibility)
Acquiring a distressed target through the Insolvency and Bankruptcy Code's resolution process, where prospective buyers (resolution applicants) must clear Section 29A eligibility bars, including related-party and past-NPA restrictions.
Buyer Example
Buyer pursuing a distressed Surat power-loom unit through the IBC resolution process gets independent legal confirmation of Section 29A eligibility before submitting a ₹9 Cr resolution plan, since a successful bid from an ineligible applicant can be annulled — and structures the acquisition to benefit from the NCLT-approved resolution plan's statutory extinguishment of undisclosed past liabilities and claims.