To accomplish the objectives laid down under the Code, a comprehensive step-by-step process is provided right from the moment of default till its realisation.One of the most crucial stages in the entire corporate insolvency resolution process (“CIRP”) is the approval of the resolution plan by the Committee of Creditors ("CoC”) as the same is a deciding factor of how the insolvency of the corporate debtor would be resolved. While considering a resolution plan, the CoC considers several factors and after exercising its commercial wisdom, approves or rejects a resolution plan. Only after the assent of the CoC by voting of not less than sixty-six percent of voting shares, the resolution plan is approved in terms of Section 30(4) of the Code. The Hon’ble Supreme Court in Ebix Singapore Pvt. Ltd. v. Committee of Creditors of Educomp Solutions Ltd (1) held that once a resolution plan is approved by the CoC, it is inter-se binding between the CoC and the Successful Resolution Applicant. (“SRA”)

Pursuant to the approval of the CoC, an application under Section 31 of the Code is required to be made to the Adjudicating Authority (“AA”) viz., the National Company Law Tribunal. (“NCLT”). The NCLT upon being satisfied that the approved plan aligns with the objectives and criteria laid down under Section 30(2) of the Code, will approve the resolution plan, which would then become binding upon the corporate debtor and its employees, creditors, guarantors, and other stakeholders involved in the resolution plan. However, if the same is not in terms of Section 30(2) of the Code, the NCLT has the power to reject the resolution plan. It is only after the approval of the resolution plan by the NCLT, that it attains finality.

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