Resolution plan compliance under insolvency law upheld where creditor approval and statutory conformity limited judicial interference.

A resolution plan under the Insolvency and Bankruptcy Code was found compliant with Section 30(2) and Regulation 39 after examination by the Resolution Professional and approval by the Committee of Creditors by the requisite majority. The record reflected legal vetting and supporting opinions confirming conformity with the statutory framework. The Adjudicating Authority noted that its interference is limited once the commercial decision of the Committee of Creditors is taken in compliance with law, unless the plan violates law or public interest. The resolution plan was therefore approved.

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Issues: Whether the resolution plan submitted by the successful resolution applicant complied with the Insolvency and Bankruptcy Code, 2016 and the CIRP Regulations, and was liable to be approved by the Adjudicating Authority.

Analysis: The resolution plan had been examined by the Resolution Professional and placed before the Committee of Creditors, which approved it by the requisite majority. The plan was found to conform to the statutory requirements under Section 30(2) of the Insolvency and Bankruptcy Code, 2016 and Regulation 39 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The record also showed legal vetting and opinions supporting its conformity with the Code. The Adjudicating Authority noted that, once the commercial decision of the Committee of Creditors had been taken in compliance with the statutory framework, its scope of interference was limited unless the plan contravened law or public interest.

Conclusion: The resolution plan was approved.

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