Approval of resolution plan binds debtor and stakeholders while limiting judicial review to statutory compliance and implementability. Approval under Section 31 binds the resolution plan on the corporate debtor, its employees, members, creditors (including government authorities), guarantors and other stakeholders if the Adjudicating Authority is satisfied the CoC approved plan meets statutory requirements and provides for effective implementation. AA review is limited to statutory compliance and implementability; it cannot reassess the CoC's commercial wisdom. On approval, the moratorium ceases, CIRP records and the plan are forwarded to the regulator, relevant filings must be made on dissolution, necessary statutory and competition approvals must be obtained within the prescribed period, and claims not included in the approved plan stand extinguished.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Approval of resolution plan binds debtor and stakeholders while limiting judicial review to statutory compliance and implementability.
Approval under Section 31 binds the resolution plan on the corporate debtor, its employees, members, creditors (including government authorities), guarantors and other stakeholders if the Adjudicating Authority is satisfied the CoC approved plan meets statutory requirements and provides for effective implementation. AA review is limited to statutory compliance and implementability; it cannot reassess the CoC's commercial wisdom. On approval, the moratorium ceases, CIRP records and the plan are forwarded to the regulator, relevant filings must be made on dissolution, necessary statutory and competition approvals must be obtained within the prescribed period, and claims not included in the approved plan stand extinguished.
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