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

A resolution plan was approved because the resolution applicant filed the required eligibility affidavit, furnished performance security, and satisfied the insolvency resolution regulations. The Committee of Creditors unanimously approved the revised plan, and the Adjudicating Authority recorded compliance with the Insolvency and Bankruptcy Code and the CIRP Regulations, including the requirements for filing, evaluation, and approval. It also found the plan workable and capable of implementation, and therefore allowed it with consequential directions on commencement, cessation of moratorium, forwarding of records, extinction of pre-resolution claims, reconstitution of management, and related implementation steps.

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Issues: (i) Whether the resolution applicant and the proposed resolution plan satisfied the requirements of the Insolvency and Bankruptcy Code, 2016 and the CIRP Regulations, 2016. (ii) Whether the resolution plan approved by the Committee of Creditors ought to be sanctioned and given effect with the consequential reliefs and directions.

Issue (i): Whether the resolution applicant and the proposed resolution plan satisfied the requirements of the Insolvency and Bankruptcy Code, 2016 and the CIRP Regulations, 2016.

Analysis: The resolution applicant filed an affidavit on eligibility under Section 29A of the Insolvency and Bankruptcy Code, 2016 and furnished the prescribed performance security. The Committee of Creditors approved the revised resolution plan unanimously. The plan was found to comply with Section 30(2) of the Insolvency and Bankruptcy Code, 2016 and the relevant provisions of the insolvency resolution regulations, including the requirements for filing, evaluation, and approval of the plan.

Conclusion: The requirements for eligibility and statutory compliance were satisfied.

Issue (ii): Whether the resolution plan approved by the Committee of Creditors ought to be sanctioned and given effect with the consequential reliefs and directions.

Analysis: The Adjudicating Authority found that the plan had been approved by the requisite majority and contained workable implementation provisions. It also recorded that the plan could be successfully implemented and issued consequential directions regarding commencement of the plan, cessation of moratorium, forwarding of records, extinction of pre-resolution claims, reconstitution of management, and related implementation measures within the permissible scope of the insolvency process.

Conclusion: The resolution plan was approved and given effect with the consequential directions granted in the order.

Final Conclusion: The application for approval of the resolution plan was allowed, and the resolution process was concluded by sanctioning the plan with implementation directions.

Ratio Decidendi: A resolution plan may be approved where the resolution applicant is eligible under Section 29A, the plan satisfies Section 30(2) and the applicable regulations, and the Committee of Creditors has approved it with the requisite voting share.

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