Case Note & Summary
The appeal was filed by Catalyst Trusteeship Ltd., a Financial Creditor of BCC Infrastructures Pvt. Ltd., against an order dated 11.08.2026 from the Adjudicating Authority concerning Company Petition No. (IB) 495 of 2023. The appeal arose due to the non-hearing of I.A. No. 64 of 2024, which sought approval for a Resolution Plan submitted by M/s Civitech Developers Private Limited, approved by the Committee of Creditors (CoC) on 08.10.2024. The application for approval had been pending for over two years, having been adjourned multiple times. The Appellant argued that under Section 31(2)(A) of the Insolvency and Bankruptcy Code, 2016, the Adjudicating Authority was required to pass an order within 30 days of receiving the Resolution Plan. The Respondent, representing the Resolution Professional, expressed a desire for the application to be disposed of promptly. The Tribunal acknowledged the workload of the Adjudicating Authority but emphasized the statutory obligation to decide on the application within the specified timeframe. Consequently, the Tribunal disposed of the appeal, requesting the Adjudicating Authority to resolve the application either on the next scheduled date or within 30 days of receiving the certified copy of the order, whichever occurred first. The appeal was thus resolved in this manner.
Headnote
A) Insolvency Law - Resolution Plan Approval - Timely Disposal of Application - Insolvency and Bankruptcy Code, 2016, Section 31(2)(A) - The Adjudicating Authority is mandated to dispose of the application for approval of the Resolution Plan within 30 days from receipt. The Tribunal directed the Adjudicating Authority to ensure timely disposal of the pending application, considering the significant delay of over two years (Paras 3-9).
Issue of Consideration
Whether the Adjudicating Authority is obligated to dispose of the application for approval of 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 either on the next scheduled date or within 30 days of receiving the certified copy of the order, whichever is earlier.
Law Points
- Insolvency proceedings
- Resolution Plan approval
- Adjudicating Authority's duty
- Section 31 of the Insolvency and Bankruptcy Code
- 2016
