A person shall not be eligible to submit a resolution plan, if such person, or any other person acting jointly or in concert with such person—

1. is an undischarged insolvent;
2. is a wilful defaulter in accordance with the guidelines of the Reserve Bank of India issued under the Banking Regulation Act, 1949;
3. at the time of submission of the resolution plan has an account, or an account of a corporate debtor under the management or control of such person or of whom such person is a promoter, classified as non-performing asset in accordance with the guidelines of the Reserve Bank of India issued under the Banking Regulation Act, 1949 or the guidelines of a financial sector regulator issued under any other law for the time being in force, and at least a period of one year has lapsed from the date of such classification till the date of commencement of the corporate insolvency resolution process of the corporate debtor:

Provided that the person shall be eligible to submit a resolution plan if such person makes payment of all overdue amounts with interest thereon and charges relating to non-performing asset accounts before submission of resolution plan;

1. has been convicted for any offence punishable with imprisonment—
   1. for two years or more under any Act specified under the Twelfth Schedule; or
   2. for seven years or more under any law for the time being in force:

   Provided that this clause shall not apply to a person after the expiry of a period of two years from the date of his release from imprisonment:

   Provided further that this clause shall not apply in relation to a connected person referred to in clause (iii) of the Explanation;

2. is disqualified to act as a director under the Companies Act, 2013;
3. is prohibited by the Securities and Exchange Board of India from trading in securities or accessing the securities market;
4. has been a promoter or in the management or control of a corporate debtor in which a preferential transaction, undervalued transaction, extortionate credit transaction or fraudulent transaction has taken place and in respect of which an order has been made by the Adjudicating Authority under this Code:

Provided that this clause shall not apply if a preferential transaction, undervalued transaction, extortionate credit transaction or fraudulent transaction has taken place prior to the acquisition of the corporate debtor by the resolution applicant pursuant to a resolution plan approved under this Code or pursuant to a scheme or plan approved by a financial sector regulator or a court, and such party has not otherwise contributed to the preferential transaction, undervalued transaction, extortionate credit transaction or fraudulent transaction;

1. has executed a guarantee in favour of a creditor in respect of a corporate debtor against which an application for insolvency resolution made by such creditor has been admitted under this Code and such guarantee has been invoked by the creditor and remains unpaid in full or in part;
2. is subject to any disability, corresponding to clauses (a) to (h), under any law in a jurisdiction outside India; or
3. has a connected person not eligible under clauses (a) to (i).

Explanation.—For the purposes of this clause, the expression "connected person" means—

1. any person who is the promoter or in the management or control of the resolution applicant; or
2. any person who shall be the promoter or in management or control of the business of the corporate debtor during the implementation of the resolution plan; or
3. the holding company, subsidiary company, associate company or related party of a person referred to in clauses (i) and (ii):

Provided that nothing in clause (iii) of the Explanation shall apply to a resolution applicant where such applicant is a financial entity and is not a related party of the corporate debtor.

Explanation.—For the purposes of this proviso, the expression "financial entity" shall mean the following entities which meet such criteria or conditions as the Central Government may, in consultation with the financial sector regulator, notify in this behalf, namely:—

1. a scheduled bank;
2. any asset reconstruction company;
3. any Alternate Investment Fund registered with the Securities and Exchange Board of India;
4. such categories of persons as may be notified by the Central Government.