https://www.taxtmi.com/caselaws?id=800933 Resolution-plan approval requires the plan to identify the cause of default and set out how it will address that cause; recording losses, lack of turnover and liabilities, or offering an undefined future business proposal, is insufficient. Committee of Creditors approval cannot cure this mandatory compliance failure. A plan valued below liquidation value does not alone prejudice a dissenting financial creditor if its minimum liquidation entitlement is paid in cash and in priority. Investigation by a liquidator, including potential avoidance proceedings, may be warranted by the debtor's circumstances. An assignee's distributable share cannot be capped before that investigation. Rectification or restoration of CIRP before liquidation remains discretionary, not mandatory. Material non-compliance and circumstances requiring investigation can support plan rejection and liquidation. en-us Mon, 12 Oct 2026 00:00:00 +0530 Wed, 14 Oct 2026 06:17:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=800933 Resolution-plan approval requires the plan to identify the cause of default and set out how it will address that cause; recording losses, lack of turnover and liabilities, or offering an undefined future business proposal, is insufficient. Committee of Creditors approval cannot cure this mandatory compliance failure. A plan valued below liquidation value does not alone prejudice a dissenting financial creditor if its minimum liquidation entitlement is paid in cash and in priority. Investigation by a liquidator, including potential avoidance proceedings, may be warranted by the debtor's circumstances. An assignee's distributable share cannot be capped before that investigation. Rectification or restoration of CIRP before liquidation remains discretionary, not mandatory. Material non-compliance and circumstances requiring investigation can support plan rejection and liquidation. Case-Laws IBC Mon, 12 Oct 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=800933