Resolution plan compliance under the Insolvency and Bankruptcy Code upheld, with binding effect and moratorium cessation.

A resolution plan under the Insolvency and Bankruptcy Code, 2016 was found compliant with the mandatory requirements of the Code and CIRP Regulations, including priority for CIRP costs and operational creditors, feasibility and viability, management arrangements, and the applicant's eligibility. On that basis, the plan was approved and made binding on the corporate debtor, creditors, guarantors, governments and other stakeholders, with the moratorium directed to cease from the date of the order. Implementation was to be supervised by the applicant and the monitoring committee.

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Issues: (i) Whether the proposed resolution plan satisfied the statutory requirements for approval under the Insolvency and Bankruptcy Code, 2016 and the CIRP Regulations. (ii) Whether the resolution plan could be approved and would bind the corporate debtor and stakeholders with consequential cessation of moratorium.

Issue (i): Whether the proposed resolution plan satisfied the statutory requirements for approval under the Insolvency and Bankruptcy Code, 2016 and the CIRP Regulations.

Analysis: The plan was examined for compliance with the mandatory requirements governing resolution plans, including priority treatment of CIRP costs and operational creditors, management and supervision arrangements, feasibility and viability, and the declaration that the plan did not contravene law. The successful resolution applicant's eligibility under the disqualification framework was also considered, and the clarifications filed regarding CIRP costs and post-approval claims were accepted. The plan was found to conform to the requirements of the Code and the CIRP Regulations.

Conclusion: The statutory requirements for approval were satisfied.

Issue (ii): Whether the resolution plan could be approved and would bind the corporate debtor and stakeholders with consequential cessation of moratorium.

Analysis: On satisfaction that the resolution plan met the requirements under the Code and the Regulations, the plan was approved. The order directed that the plan would be binding on the corporate debtor, creditors, guarantors, governments and other stakeholders, and that the moratorium would cease from the date of the order. It also recorded that the applicant and monitoring committee would supervise implementation.

Conclusion: The resolution plan was approved and made binding, and the moratorium ceased.

Final Conclusion: The resolution applicant's plan was sanctioned with binding effect on all relevant stakeholders, and the insolvency process moved into implementation under the approved plan.

Ratio Decidendi: A resolution plan may be approved when it satisfies the mandatory requirements of the Insolvency and Bankruptcy Code, 2016 and the CIRP Regulations, including treatment of CIRP costs and creditors, eligibility of the resolution applicant, and lawful implementation arrangements.

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