Resolution plan compliance under the Insolvency and Bankruptcy Code leads to approval when statutory requirements are met.

A resolution plan approved by the committee of creditors was found to comply with section 30(2) of the Insolvency and Bankruptcy Code and the applicable regulations, including priority payment of insolvency resolution process costs, treatment of operational creditors, feasibility, viability, implementation terms, and absence of disqualification under section 29A. The adjudicating authority's role under section 31 was confined to verifying statutory and regulatory compliance, and once that compliance was established, the plan was approved. The record also noted the filing of the required performance bank guarantee and compliance affidavit, supporting approval of the plan.

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Issues: Whether the resolution plan, as approved by the committee of creditors, satisfied the requirements of section 30(2) of the Insolvency and Bankruptcy Code, 2016 and was fit for approval under section 31 of the Insolvency and Bankruptcy Code, 2016.

Analysis: The resolution plan was approved by the committee of creditors with the requisite voting share after consideration of feasibility, viability and distribution. The plan provided for payment of insolvency resolution process costs in priority, treatment of operational creditors, management of the corporate debtor after approval, and implementation and supervision of the plan. The resolution professional placed on record compliance with the statutory requirements, including the prescribed regulations and the absence of disqualification under section 29A. The plan also reflected the required stakeholder treatment and was supported by the performance bank guarantee and compliance affidavit filed before the adjudicating authority.

Conclusion: The resolution plan satisfied the statutory requirements and was approved.

Ratio Decidendi: The adjudicating authority's role under section 31 is confined to verifying whether the resolution plan approved by the committee of creditors conforms to section 30(2) and the applicable regulations, and if it does, the plan must be approved.

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