Lawgist31Approval of resolution plan
(1) If the Adjudicating Authority is satisfied that the resolution plan as approved by the committee of creditors under sub-section (4) of section 30 meets the requirements as referred to in sub-section (2) of section 30, it shall by order approve the resolution plan which shall be binding on the corporate debtor and its employees, members, creditors, 1[including the Central Government, any State Government or any local authority to whom a debt in respect of the payment of dues arising under any law for the time being in force, such as authorities to whom statutory dues are owed,] guarantors and other stakeholders involved in the resolution plan.
2[Provided that the Adjudicating Authority shall, before passing an order for approval of resolution plan under this sub-section, satisfy that the resolution plan has provisions for its effective implementation.]
(2) Where the Adjudicating Authority is satisfied that the resolution plan does not confirm to the requirements referred to in sub-section (1), it may, by an order, reject the resolution plan. (3) After the order of approval under sub-section (1),--
(a) the moratorium order passed by the Adjudicating Authority under section 14 shall cease to have effect; and
(b) the resolution professional shall forward all records relating to the conduct of the corporate insolvency resolution process and the resolution plan to the Board to be recorded on its database.
2[(4) The resolution applicant shall, pursuant to the resolution plan approved under sub-section (1), obtain the necessary approval required under any law for the time being in force within a period of one year from the date of approval of the resolution plan by the Adjudicating Authority under sub-section (1) or within such period as provided for in such law, whichever is later:
Provided that where the resolution plan contains a provision for combination, as referred to in section 5 of the Competition Act, 2002 (12 of 2003), the resolution applicant shall obtain the approval of the Competition Commission of India under that Act prior to the approval of such resolution plan by the committee of creditors.]
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1. Ins. by Act 26 of 2019, s. 7 (w.e.f. 16-08-2019).
2. Ins. by Act 26 of 2018, s. 24 (w.e.f. 6-6-2018).
- 6 Persons who may initiate corporate insolvency resolution process
- 7 Initiation of corporate insolvency resolution process by financial creditor
- 8 Insolvency resolution by operational creditor
- 9 Application for initiation of corporate insolvency resolution process by operational creditor
- 10 Initiation of corporate insolvency resolution process by corporate applicant
- 11 Persons not entitled to make application
- 12 Time-limit for completion of insolvency resolution process
- 12A Withdrawal of application admitted under section 7, 9 or 10
- 13 Declaration of moratorium and public announcement
- 14 Moratorium
- 15 Public announcement of corporate insolvency resolution process
- 16 Appointment and tenure of interim resolution professional
- 17 Management of affairs of corporate debtor by interim resolution professional
- 18 Duties of interim resolution professional
- 19 Personnel to extend co-operation to interim resolution professional
- 20 Management of operations of corporate debtor as going concern
- 21 Committee of creditors
- 22 Appointment of resolution professional
- 23 Resolution professional to conduct corporate insolvency resolution process
- 24 Meeting of committee of creditors
- 25 Duties of resolution professional
- 25A Rights and duties of authorised representative of financial creditors
- 26 Application for avoidance of transactions not to affect proceedings
- 27 Replacement of resolution professional by committee of creditors
- 28 Approval of committee of creditors for certain actions
- 29 Preparation of information memorandum
- 30 Submission of resolution plan
- 31 Approval of resolution plan
- 32 Appeal
- 32A Liability for prior offences, etc
