Resolution plan approval framework expands with split approval, defect rectification notice, and extinguishment of pre-approval claims. Section 31 is amended to allow the Adjudicating Authority, on application by the resolution professional and with creditor approval, to first approve implementation of a resolution plan and later approve distribution. The Authority may call for rectification of defects before rejecting a plan and must pass orders within thirty days, recording reasons for delay. The amendment also protects associated licences and similar grants during their remaining term, and provides for extinguishment of pre-approval claims and bar on proceedings, subject to stated exceptions for promoters, guarantors, and persons with joint liability.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Resolution plan approval framework expands with split approval, defect rectification notice, and extinguishment of pre-approval claims.
Section 31 is amended to allow the Adjudicating Authority, on application by the resolution professional and with creditor approval, to first approve implementation of a resolution plan and later approve distribution. The Authority may call for rectification of defects before rejecting a plan and must pass orders within thirty days, recording reasons for delay. The amendment also protects associated licences and similar grants during their remaining term, and provides for extinguishment of pre-approval claims and bar on proceedings, subject to stated exceptions for promoters, guarantors, and persons with joint liability.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.