Approval of resolution plan and Appeal against order passed under section 54L [ Section 54L & 54M ] - Insolvency Resolution And Liquidation For Corporate Persons - IBC

Approval of resolution plan and Appeal against order passed under section 54L [Section 54L 54M] Approval of resolution plan by Adjudicating Authority [ Section 54L ] (1) If the Adjudicating Authority is satisfied that the resolution plan as approved by the committee of creditors under sub- section (4) or sub- section (12) of section 54K , as the case may be, subject to the conditions provided therein, meets the requirements as referred to in section 30(2) , it shall within thirty days of the receipt of such resolution plan , by order approve the resolution plan. Provided that the Adjudicating Authority shall, before passing an order for approval of a resolution plan under this sub- section , satisfy itself that the resolution plan has provisions for its effective implementation. [ Section 54L(1) ] (2) The order of approval under sub- section (1) shall have such effect as provided under sub-sections (1), (3) and (4) of section 31 , which shall, mutatis mutandis apply , to the proceedings under this Chapter. [ Section 54L(2) ] Adjudicating Authority can order to terminating the insolvency process (3) Where the Adjudicating Authority is satisfied that the resolution plan does not conform to the requirements referred to in sub- section (1) , it may, within thirty days of the receipt of such resolution plan , by an order, reject the resolution plan and pass an order under section 54N . [ Section 54L(3) ] (4) Notwithstanding anything to the contrary contained in this section , where the Adjudicating Authority has passed an order under section 54J(2) and the resolution plan approved by the committee of creditors under sub- section (4) or sub- section (12), of section 54K , does not result in the change in the management or control of the corporate debtor to a person who was not a promoter or in the management or control of the corporate debtor, the Adjudicating Authority shall pass an order - (a) rejecting such resolution plan; (b) terminating the pre-packaged insolvency resolution process and passing a liquidation order in respect of the corporate debtor as referred to in sub-clauses (i), (ii) and (iii) of clause (b) of section 33(1) ; and (c) declaring that the pre-packaged insolvency resolution process costs, if any, shall be included as part of the liquidation costs for the purposes of liquidation of the corporate debtor. [ Section 54L(4) ] Appeal against order under section 54L [ Section 54 M ] Any appeal from an order approving the resolution plan under section 54L(1) , shall be on the grounds laid down in section 61(3) of code. As per section 61(3) of code an appeal against an order approving a resolution plan under section 31 may be filed on the following grounds, namely:- (i) the approved resolution plan is in contravention of the provisions of any law for the time being in force; (ii) there has been material irregularity in exercise of the powers by the resolution professional during the corporate insolvency resolution period; (iii) the debts owed to operational creditors of the corporate debtor have not been provided for in the resolution plan in the manner specified by the Board; (iv) the insolvency resolution process costs have not been provided for repayment in priority to all other debts; or (v) the resolution plan does not comply with any other criteria specified by the Board. As per section 61(4) of Code An appeal against a liquidation order passed in the following section may be filed on grounds of material irregularity or fraud committed in relation to such a liquidation order. under section 33 , or sub- section (4) of section 54L , or sub- section (4) of section 54N ,