Resolution plan compliance under insolvency law upheld, with commercial wisdom protected and only limited reliefs granted.

A resolution plan under the Insolvency and Bankruptcy Code, 2016 was found compliant with Section 30(2) and the connected regulations because it provided for insolvency resolution process costs, operational creditor treatment, management and supervision arrangements, and no contravention of law, while also reflecting a value above liquidation value. The Adjudicating Authority reiterated that its review is limited to statutory compliance and does not extend to the commercial wisdom of the Committee of Creditors, which had approved the plan unanimously. Ancillary reliefs seeking waiver of stamp duty, tax liability and registration charges were declined, while the relief relating to offences under Section 32A was granted. The approved plan was stated to bind stakeholders, with only the expressly granted reliefs effective.

---

---

Issues: Whether the approved resolution plan satisfied the statutory requirements for approval under the Insolvency and Bankruptcy Code, 2016, and whether the ancillary reliefs and concessions sought in the plan could be granted.

Analysis: The Resolution Professional placed the plan before the Adjudicating Authority after approval by the Committee of Creditors with 100% voting share. The plan was examined against the requirements of Section 30(2) of the Insolvency and Bankruptcy Code, 2016 and the connected regulations governing payment of insolvency resolution process costs, treatment of operational creditors, management of the corporate debtor, implementation and supervision of the plan, and absence of contravention of law. The plan was found compliant, Form H was in order, and the proposed consideration was higher than the liquidation value. The Authority also applied the settled principle that its review is confined to the statutory parameters and cannot trespass into the commercial wisdom of the Committee of Creditors. As to reliefs, waiver of stamp duty, tax liability, and registration charges was declined, while the relief relating to offences covered by Section 32A was granted; ungranted reliefs were expressly left unapproved.

Conclusion: The resolution plan was approved. The plan was held binding on all stakeholders, the moratorium ceased, claims not forming part of the plan stood extinguished, and only the specifically granted reliefs were allowed.

---