What are your views on suggestion of Mr. John to BNC Limited? Whether the same is permissible? Support your answer with legal background.

ECB by entities under restructuring/ ECB facility for refinancing stressed assets: An entity which is under a restructuring scheme/ corporate insolvency resolution process can raise ECB only if specifically permitted under the resolution plan.Eligible corporate borrowers who have availed Rupee loans domestically for capital expenditure in manufacturing and infrastructure sector and which have been classified as SMA-2 or NPA can avail ECB for repayment of these loans under any one time settlement with lenders. Lender banks are also permitted to sell, through assignment, such loans to eligible ECB lenders, provided, the resultant external commercial borrowing complies with all-in-cost, minimum average maturity period and other relevant norms of the ECB framework. Foreign branches/ overseas subsidiaries of Indian banks are not eligible to lend for the above purposes. The applicable MAMP will have to be strictly complied with under all circumstances.Eligible borrowers under the ECB framework, who are participating in the Corporate Insolvency Resolution Process under Insolvency and Bankruptcy Code, 2016 as resolution applicants, can raise ECB from all recognised lenders, except foreign branches/subsidiaries of Indian banks, for repayment of Rupee term loans of the target company. Such ECB will be considered under the approval route In the instant case, BNC Limited has to follow the above procedure for the ECB route for meeting the funds requirement. Alternative Mr. John's suggestion to BNC Limited to use ECB as a funding route is not permissible. This is because BNC Limited is currently undergoing a Corporate Insolvency Resolution Process (CIRP). Legal Background According to the Insolvency and Bankruptcy Code, 2016 (IBC) , once a company enters the CIRP, the powers of its Board of Directors are suspended and are exercised by the Interim Resolution Professional (IRP) or Resolution Professional (RP). During the CIRP, the company is under a moratorium, and the management's role is to assist the RP in managing the company's affairs, which primarily involves maintaining the company as a going concern until a resolution plan is approved. The company, as a corporate debtor, cannot enter into any new transactions that are not in the ordinary course of business without the explicit approval of the Committee of Creditors (CoC). Suggesting and arranging an External Commercial Borrowing (ECB) is not an action in the ordinary course of business and requires approval. Furthermore, Section 29A of the IBC restricts certain persons from submitting a resolution plan. While Mr. John's suggestion might be seen as an attempt to save the company, his authority as a director of BNC Limited is suspended, and he cannot take such decisions. Therefore, his suggestion is in violation of the legal framework of the IBC.