Resolution plan compliance under insolvency law approved after creditor support, eligibility review, and statutory conformity checks.

A resolution plan under the Insolvency and Bankruptcy Code was found compliant where the resolution applicant was certified eligible under the ineligibility framework, the committee of creditors approved the plan with the requisite voting share, and the plan addressed feasibility, viability, liquidation value, CIRP costs, and treatment of stakeholders. The plan was recorded as not contravening the Code or the CIRP Regulations and was approved under Section 31(1), making it binding on the corporate debtor and stakeholders. The insolvency resolution process then moved to completion, with the moratorium ceasing and the resolution applicant required to obtain any further statutory approvals within the permitted period.

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Issues: Whether the resolution plan, approved by the committee of creditors with the requisite majority and found to comply with the Insolvency and Bankruptcy Code, 2016 and the CIRP Regulations, deserved approval under Section 31 of the Insolvency and Bankruptcy Code, 2016.

Analysis: The resolution applicant's eligibility under Section 29A of the Insolvency and Bankruptcy Code, 2016 was certified. The plan was supported by the committee of creditors with 75.91% voting share after consideration of feasibility, viability, liquidation value, and stakeholder treatment. The plan also provided for CIRP costs, workmen and employees, operational creditors, and financial creditors, and the tribunal recorded that it did not contravene the Code or the CIRP Regulations.

Conclusion: The resolution plan was approved under Section 31(1) of the Insolvency and Bankruptcy Code, 2016 and became binding on the corporate debtor and all stakeholders.

Final Conclusion: The insolvency resolution process culminated in approval of the plan, cessation of moratorium, and obligation of the resolution applicant to obtain any further statutory approvals within the permitted period.

Ratio Decidendi: A resolution plan may be approved when it receives the requisite committee of creditors approval, satisfies the statutory requirements of Sections 30(2) and 30(4), and the resolution applicant is eligible under Section 29A of the Insolvency and Bankruptcy Code, 2016.

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