Resolution plan approval under the Insolvency Code depends on creditor consent, compliance certification, and statutory implementation requirements.

A revised resolution plan may be approved under the Insolvency and Bankruptcy Code, 2016 when it receives Committee of Creditors approval and is certified by the Resolution Professional as compliant with section 30(2) and the CIRP Regulations, 2016. The plan must provide for insolvency resolution process costs, treatment of financial and operational creditors, statutory dues and contingent liabilities, timely implementation, and compliance with section 29A eligibility conditions. On that basis, the plan becomes binding on the corporate debtor and stakeholders, and the resolution process moves to implementation in accordance with the Code.

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Issues: Whether the revised resolution plan, approved by the Committee of Creditors, satisfied the statutory requirements for approval under the Insolvency and Bankruptcy Code, 2016 and the CIRP Regulations, 2016.

Analysis: The plan had been approved by the Committee of Creditors with 100% voting share. The Resolution Professional certified compliance with the mandatory requirements of section 30(2) of the Insolvency and Bankruptcy Code, 2016 and the relevant provisions of the Insolvency and Bankruptcy Board of India (Insolvency Process of Corporate Persons) Regulations, 2016. The plan provided for payment towards insolvency resolution process costs, treatment of financial creditors and operational creditors, provision for statutory dues and contingent liabilities, implementation within the stipulated period, and did not contravene section 29A of the Insolvency and Bankruptcy Code, 2016. The plan was therefore found to meet the statutory requirements for approval.

Conclusion: The revised resolution plan was approved and was made binding on the corporate debtor and all stakeholders.

Final Conclusion: The application for approval of the resolution plan was allowed, the moratorium came to an end, and the resolution plan became effective in accordance with the Code.

Ratio Decidendi: A resolution plan may be approved when it is duly sanctioned by the Committee of Creditors and is certified to comply with the mandatory requirements of the Insolvency and Bankruptcy Code, 2016 and the CIRP Regulations, 2016, including eligibility and implementation conditions.

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