Tribunal Limits Interference in Resolution Plans; Modifies Non-Compliant Clauses to Adhere to Insolvency Code Requirements.

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Full Text of the Document

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....The jurisdiction of the Adjudicating Authority and the Appellate Tribunal to interfere with the Resolution Plan approved by the Committee of Creditors (CoC) is limited to examining whether the Resolution Plan complies with Section 30(2)(e) of the Insolvency and Bankruptcy Code (IBC). If the Resolution Plan is not in conformity with statutory requirements, the Appellate Tribunal can either set aside the Resolution Plan or delete the clauses that are not in accordance with the law to make the Resolution Plan compliant. In this case, the Appellate Tribunal partially modified the Resolution Plan by deleting the clauses contrary to Section 30(2)(e) of the IBC, without interfering with the other approved parts of the Resolution Plan. The application was disposed of accordingly.....