Approval of Resolution Plan confirms CoC choice; plan validated, non-plan claims extinguished and moratorium lifted.

Approval of a resolution plan approved by the committee of creditors is subject to limited judicial scrutiny confined to whether the plan meets the statutory requirements; the adjudicating authority must satisfy itself that the plan conforms to the prescribed criteria, failing which it may be rejected. On approval, claims not included in the resolution plan are extinguished and no person may initiate or continue proceedings in respect of such antecedent claims. Management and affairs vest pursuant to the approved plan and the moratorium ceases. The corporate debtor must obtain any requisite statutory approvals within one year, and records of the CIRP and plan are to be forwarded to the regulator.

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Issues: Whether the Resolution Plan submitted by Macrotech Developers Limited, as approved by the Committee of Creditors, meets the requirements of Section 30(2) of the Insolvency and Bankruptcy Code, 2016 and related CIRP Regulations and whether the Tribunal should approve the Resolution Plan under Section 31 of the Code.

Analysis: The Tribunal examined the Resolution Plan and the record of the CIRP including voting by the Committee of Creditors, compliance with Section 30(2) of the Code, eligibility under Section 29A, revised claim amounts following NCLAT directions (rate of interest adjustment) and relevant CIRP Regulations (including Regulations 36B(4A), 37, 38, 38(1A), 39(3B) and 39(4)). The Tribunal considered statutory parameters for approval under Section 31, settled principles limiting the Adjudicating Authority's role to scrutiny under Section 30(2) (as per K. Sashidhar and Essar Steel precedents), verification of admitted claims and the plan's provisions for payment of CIRP costs, operational and financial creditor payouts, implementation mechanisms, performance security and treatment of avoidance/ litigation recoveries pursuant to provisions of the Code.

Conclusion: The Tribunal concluded that the Resolution Plan submitted by Macrotech Developers Limited satisfies the requirements of Section 30(2) of the Code and the applicable CIRP Regulations, is not in contravention of Section 29A, and therefore the Application seeking approval of the Resolution Plan is allowed; the Resolution Plan is approved and binding as provided in the order.

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