Resolution plan compliance under the Insolvency and Bankruptcy Code upheld after verification of creditor treatment, feasibility, and statutory requirements.

A resolution plan under the Insolvency and Bankruptcy Code was found compliant where the committee of creditors approved it unanimously and the resolution professional verified statutory requirements, including CIRP costs, creditor treatment, management structure, feasibility and viability. The Tribunal confined review to the Code and CIRP Regulations, recognised the commercial wisdom of the committee of creditors, and noted that the plan was not hit by Section 29A and complied with Regulations 37 to 39. The plan was approved.

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Issues: Whether the resolution plan approved by the committee of creditors satisfied the requirements for approval under the Insolvency and Bankruptcy Code, 2016 and the related regulations.

Analysis: The plan had been approved by the committee of creditors with 100% voting share. The resolution professional placed the plan for approval after verifying compliance with the statutory requirements, including treatment of CIRP costs, payment to creditors, management and implementation structure, and the plan's feasibility and viability. The Tribunal limited its scrutiny to the parameters under the Code and the CIRP Regulations and noted that it could not substitute its own view for the commercial wisdom of the committee of creditors. It was also found that the plan was not contrary to Section 29A of the Code and complied with Regulations 37 to 39.

Conclusion: The resolution plan was approved.

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