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TMI BlogUpholding Fairness and Transparency in Insolvency Resolution: A Landmark Judgment on the IBCX X X X Extracts X X X X X X X X Extracts X X X X ..... the Supreme Court of India concerning the Insolvency and Bankruptcy Code (IBC). The judgment addresses crucial issues related to the approval of a resolution plan by the Adjudicating Authority, the maintainability of a recall application, and the grounds for setting aside the approval order. The court's decision sheds light on the principles and doctrines governing the insolvency resolution pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not maintainable and was barred by time. Discussions and Findings of the Court The Supreme Court made the following crucial observations and findings: * The court held that the recall application filed by the appellant was maintainable, as the grounds taken qualified as valid grounds for seeking a recall of the approval order. * The court found no substance in the plea that the recall appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, a statutory body, without addressing the necessary approvals and feasibility aspects, as required under Regulation 38(3) of the CIRP Regulations, 2016. Analysis and Decision by the Court Based on the above findings, the Supreme Court arrived at the following decision: * The appeals of the appellant were allowed, and the impugned order dated 24.11.2022 was set aside. * The order dated 04.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Natural Justice: The court emphasized the importance of serving notice to parties and conducting proceedings in a fair and transparent manner, ensuring that no party is denied the opportunity to present their case. * Principle of Fairness and Equity: The court highlighted the need for resolution plans to be fair and equitable to each class of creditors, as mandated by the IBC and the CIRP Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pproval order and remanding the resolution plan to the CoC for re-submission, the court has reinforced the need for strict compliance with the IBC and the CIRP Regulations. The judgment serves as a significant precedent, providing guidance on the maintainability of recall applications, the grounds for challenging approval orders, and the standards to be met by resolution plans. The court's de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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