Resolution plan compliance under insolvency law: creditor commercial wisdom is non-justiciable, and statutory requirements must still be met.

A resolution plan under the Insolvency and Bankruptcy Code, 2016 must satisfy statutory requirements on insolvency resolution process costs, treatment of operational creditors, applicant eligibility, and compliance with prescribed regulations before approval by the Adjudicating Authority. The committee of creditors' approval by the requisite voting share was treated as a commercial decision, and its feasibility, viability, and implementation assessment was not open to interference on merits. Requests for automatic waivers or approvals concerning pending proceedings were not granted as part of the plan, leaving affected parties to pursue remedies before the competent forums. On that basis, the plan was found compliant with the Code and approved.

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Issues: Whether the resolution plan, having been approved by the committee of creditors, satisfied the requirements of the Insolvency and Bankruptcy Code, 2016 for approval by the Adjudicating Authority and whether the court could interfere with the commercial decision of the committee of creditors.

Analysis: The resolution plan was examined for compliance with the statutory requirements governing payment of insolvency resolution process costs, treatment of operational creditors, management and implementation provisions, eligibility of the resolution applicant, and conformity with the prescribed regulations. The committee of creditors approved the plan by the requisite voting share, and the plan was found to address feasibility, viability, and implementation requirements. The decision of the committee of creditors on commercial considerations was treated as non-justiciable, and the requested approvals or waivers concerning pending proceedings were not granted as automatic relief, leaving parties to seek remedies before the competent forums.

Conclusion: The resolution plan was held to be compliant with the Code and the regulations and was approved.

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