Promoter restructuring proposals cannot replace a compliant resolution plan; liquidation follows when IBC approval requirements are not met.

A promoter's restructuring proposal cannot be treated as a resolution plan unless it satisfies the Insolvency and Bankruptcy Code's mandatory approval framework, including the requirements for a compliant plan under section 30(2). The proposal, at best, could be considered in the context of withdrawal under section 12A, not as a substitute for a resolution plan submitted through the insolvency process. As no compliant and approved resolution plan was placed before the authority, liquidation under section 33(1)(b) was justified and the challenge to the liquidation direction failed.

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Issues: Whether the promoter's restructuring proposal could be treated as a valid resolution plan under the Insolvency and Bankruptcy Code, 2016, and whether the liquidation order passed under the Code called for interference.

Analysis: The restructuring proposal submitted by the promoter was not part of a resolution plan submitted pursuant to the insolvency process and did not satisfy the statutory requirements applicable to a resolution plan. A proposal of that nature could, at best, be considered in the context of withdrawal under Section 12A of the Insolvency and Bankruptcy Code, 2016, but not as a substitute for the mandatory requirements governing approval of a resolution plan. Since no compliant resolution plan had been placed before the authority and the requirements of Section 30(2) of the Insolvency and Bankruptcy Code, 2016 were not met, liquidation under Section 33(1)(b) of the Insolvency and Bankruptcy Code, 2016 was justified.

Conclusion: The restructuring proposal was not a valid resolution plan, and the liquidation order was in law and not liable to be interfered with.

Final Conclusion: The challenge to the liquidation direction failed, and the appellate relief sought by the appellant was not granted.

Ratio Decidendi: A promoter's restructuring proposal cannot be treated as a resolution plan unless it complies with the statutory requirements of the insolvency process and the approval framework under the Insolvency and Bankruptcy Code, 2016; in the absence of a compliant and approved resolution plan, liquidation under the Code is warranted.

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