Case Note & Summary
The appeal was filed by a Financial Creditor against an order of the Adjudicating Authority regarding the approval of a Resolution Plan. The Resolution Plan submitted by M/s Civitech Developers Private Limited was approved by the Committee of Creditors (CoC) on 08.10.2024, but the application for its approval remained pending for over two years, having been adjourned multiple times. The Appellant argued that the Adjudicating Authority had a statutory obligation under Section 31(2)(A) of the Insolvency and Bankruptcy Code, 2016 to approve the plan within 30 days of receipt. The Respondent, representing the Resolution Professional, expressed a desire for timely resolution as well. The Tribunal acknowledged the workload of the Adjudicating Authority but emphasized the necessity of adhering to the statutory timeline. Consequently, the Tribunal disposed of the appeal, urging the Adjudicating Authority to resolve the application promptly, ideally on the next scheduled date or within 30 days of receiving the certified copy of the order.
Headnote
A) Insolvency Law - Resolution Plan Approval - Timeliness of Approval - Insolvency and Bankruptcy Code, 2016, Section 31(2)(A) - The Adjudicating Authority is mandated to approve the Resolution Plan within 30 days of receipt. The Tribunal directed the Adjudicating Authority to dispose of the application for approval of the Resolution Plan expeditiously, considering the significant delay already incurred (Paras 3-9).
Issue of Consideration
Whether the Adjudicating Authority is obligated to approve the Resolution Plan within the stipulated time frame under Section 31 of the Insolvency and Bankruptcy Code, 2016.
Final Decision
The Tribunal disposed of the appeal, directing the Adjudicating Authority to resolve the application for approval of the Resolution Plan expeditiously, ideally on the next date or within 30 days of receiving the certified copy of the order.
Law Points
- Resolution Plan approval
- Financial Creditor rights
- Adjudicating Authority duties
- Section 31 of the Insolvency and Bankruptcy Code
- 2016
Case Details
2026 LawText (NCLAT) (09) 73
Comp. App. (AT) (Ins) No. 1589 of 2026
Justice Mohammad Faiz Alam Khan, Mr. Naresh Salecha
Mr. Gopal Jain, Mrs. Renuka Iyer, Mr. Anmol Bansal, Mr. Aman Agarwal, Mr. Atul Sharma, Mr. Aditya Vashisth, Mr. Harish Taneja, Mr. Gaurav Raj Grover
Catalyst Trusteeship Ltd.
Harish Taneja Resolution Professional of BCC Infrastructures Pvt. Ltd. & Ors.
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Nature of Litigation
Appeal against the order of the Adjudicating Authority regarding the approval of a Resolution Plan.
Remedy Sought
Catalyst Trusteeship Ltd. sought timely approval of the Resolution Plan from the Adjudicating Authority.
Filing Reason
The application for approval of the Resolution Plan had been pending for over two years.
Previous Decisions
The Resolution Plan was approved by the CoC on 08.10.2024, but the application remained unaddressed.
Issues
Obligation of the Adjudicating Authority to approve the Resolution Plan within the statutory time frame
Impact of delays on the resolution process
Submissions/Arguments
The Appellant argued for timely approval based on statutory obligations
The Respondent expressed a desire for prompt resolution of the application
Ratio Decidendi
The Tribunal emphasized the statutory duty of the Adjudicating Authority to approve the Resolution Plan within 30 days as per Section 31(2)(A) of the Insolvency and Bankruptcy Code, 2016, and directed timely action to prevent undue delays.
Judgment Excerpts
The instant appeal has been filed by the Appellant who’s a Financial Creditor of the Corporate Debtor against the order dated 11.08.2026
We dispose of the instant appeal, with the request to Learned Adjudicating Authority to dispose of the aforesaid plan approval application filed by the Resolution Professional.
Procedural History
The appeal was filed against the order of the Adjudicating Authority dated 11.08.2026, which had adjourned the hearing of the application for approval of the Resolution Plan.
Acts & Sections
- Insolvency and Bankruptcy Code: Section 31(2)(A)
