Mandate of legislation under Sec. 31 of IBC is either to approve Resolution Plan or to reject | There is no provision for making alteration or modification in the resolution plan – Mathuraprasad C Pandey Vs. Partiv Parikh RP of M.V. Omni Projects (India) Ltd. – NCLAT New Delhi
Hon’ble NCLAT held that there is no doubt that if a resolution plan is submitted before the Adjudicating Authority which is in compliance with sub-section (1) of Section 31 as well as in consonance with the provisions of Section 30 of the Code such resolution plan has to be approved by the Adjudicating Authority since in Section 31 word “shall” has been incorporated with proviso that the Adjudicating Authority must be satisfied that the resolution plan has provisions for its effective implementation. Sub-section (2) of Section 31 of the IBC further empowers the Adjudicating Authority to reject the resolution plan, if he is satisfied that resolution plan is not in conformity with the requirements as referred to in sub-section (1) of Section 31 of the IBC. It is clear that mandate of legislation is either to approve the resolution plan or to reject. However, there is no provision for making alteration or modification in the resolution plan.
