SC denies defaulting promoters back-door entry in insolvency process The apex court said that a promoter, who is barred from bidding for his company undergoing insolvency proceeding, cannot also take control of the company back by using the provision of 'scheme of arrangement' under Section 230 of the Companies Act Dipak Mondal | March 16, 2021 | Updated 13:59 IST The Supreme Court has closed the back-door entry of defaulting promoters by using a special provision of compromise or arrangement during the liquidation phase of the insolvency proceeding. The apex court said that a promoter, who is barred from bidding for his company undergoing insolvency proceeding, cannot also take control of the company back by using the provision of 'scheme of arrangement'.