2022 (1) TMI 1381 - SCH - Insolvency and Bankruptcy

Approval of Resolution Plan - adjudicating authority dismissed the application filed by the appellant which was upheld by the appellate tribunal - HELD THAT - As per Section 31 of the IPC, the Resolution Plan becomes final only after it is approved by the adjudicating authority - reliance placed in the case of GHANASHYAM MISHRA AND SONS PRIVATE LIMITED THROUGH THE AUTHORIZED SIGNATORY VERSUS EDELWEISS ASSET RECONSTRUCTION COMPANY LIMITED THROUGH THE DIRECTOR ORS. 2021 (4) TMI 613 - SUPREME COURT where it was held that After CoC approves the plan, the Adjudicating Authority is required to arrive at a subjective satisfaction, that the plan conforms to the requirements as are provided in subsection (2) of Section 30 of the I B Code. Only thereafter, the Adjudicating Authority can grant its approval to the plan. Appeal dismissed.

Summary

The Supreme Court upheld the dismissal of an appeal regarding a rejected claim in a Resolution Plan case. The appellant's claim was rejected by the Resolution Professional after the Committee of Creditors approved the Plan. The appellant's argument based on Section 31 of the IPC was not accepted by the Court. The appeal was dismissed, but the appellant can seek other remedies available under the law.