Resolution plan approval in insolvency stands where no formal eligible plan was filed and no material irregularity was shown.

In insolvency proceedings involving a running hospital, a grievance that a resolution proposal was ignored was rejected where the record showed participation in the Committee of Creditors meeting, an invitation to submit a plan, and no formal eligible plan actually filed. Alleged lapses by the resolution professional in taking possession or control of the hospital were held insufficient to disturb approval of the resolution plan, because physical possession was not required in the same way as in other cases and steps such as visiting the hospital, seeking documents, issuing Form G notice, and continuing the process showed substantial compliance. The approved plan was left undisturbed.

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Issues: (i) whether the appellant's grievance that his resolution proposal was not considered had merit; (ii) whether any lapse by the resolution professional in taking possession or control of the corporate debtor's hospital justified interference with approval of the resolution plan.

Issue (i): whether the appellant's grievance that his resolution proposal was not considered had merit.

Analysis: The appellant participated in the Committee of Creditors meeting in which his proposal was discussed. The record showed that he was invited to submit a resolution plan if he was otherwise eligible under the applicable eligibility criteria. No formal resolution plan was actually submitted by him.

Conclusion: The grievance that his plan was never considered was rejected.

Issue (ii): whether any lapse by the resolution professional in taking possession or control of the corporate debtor's hospital justified interference with approval of the resolution plan.

Analysis: In the facts of a running hospital, physical possession was not required in the same manner as in other cases. The resolution professional had taken steps such as visiting the hospital, seeking access to documents, issuing notice in Form G, and carrying forward the process, all of which were noticed by the Committee of Creditors. The approved plan had also been accepted by the Committee of Creditors in exercise of its commercial wisdom and was found to comply with the statutory scheme.

Conclusion: No material irregularity or statutory lapse was found, and interference with the approved resolution plan was unwarranted.

Final Conclusion: The approval of the resolution plan was sustained and the appeal failed.

Ratio Decidendi: Approval of a resolution plan will not be interfered with when the corporate debtor's resolution process shows substantial statutory compliance, the Committee of Creditors has exercised its commercial wisdom, and the appellant has not submitted a formal eligible plan or established any material irregularity by the resolution professional.

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