Resolution plan compliance under insolvency law upheld where statutory requirements, creditor approval and legal conformity were satisfied.

A resolution plan under the Insolvency and Bankruptcy Code was examined for compliance with section 30(2) and the plan-approval framework. The plan provided for insolvency resolution costs, payment to operational creditors, post-approval management of the corporate debtor, and implementation and supervision mechanisms. Compliance was supported by the resolution applicant's affidavit on section 29A disqualification and the Form H certificate confirming legal conformity. On that basis, the plan was accepted as meeting the statutory requirements for approval under section 31(1), making it binding on the corporate debtor and stakeholders and bringing the insolvency process to a close.

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Issues: Whether the resolution plan approved by the Committee of Creditors satisfied the requirements for approval under section 30(2) of the Insolvency and Bankruptcy Code, 2016 and was liable to be approved under section 31(1) of that Code.

Analysis: The resolution plan was examined for compliance with the statutory requirements governing approval of a plan. Provision was made for insolvency resolution process costs, repayment of operational creditors, management of the corporate debtor after approval, and the mechanism for implementation and supervision of the plan. The resolution applicant also filed an affidavit asserting absence of disqualification under section 29A. The Authority accepted the plan in the light of its conformity with the statutory framework and the approval already granted by the Committee of Creditors, and relied on the certificate in Form H under regulation 39(4) confirming legal compliance.

Conclusion: The plan complied with section 30(2) and was approved under section 31(1) of the Insolvency and Bankruptcy Code, 2016.

Final Conclusion: The resolution plan became binding on the corporate debtor and all stakeholders, the moratorium ceased, and the corporate insolvency resolution process stood concluded by approval of the plan.

Ratio Decidendi: Where a resolution plan meets the statutory requirements of section 30(2) and is approved by the Committee of Creditors, the Adjudicating Authority is bound to approve it under section 31(1) if it is otherwise in conformity with law.

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