Finality Of Resolution Plans Under IBC

In 2016, the Insolvency and Bankruptcy Code ("IBC") was enacted with the objective to bring the insolvency law in India under a single unified umbrella and to ensure speedy resolution of an entity ("Corporate Debtor") which has defaulted in payment to its creditors (including the statutory authorities). Under the IBC, the Corporate Debtor is required to undergo a Corporate Insolvency Resolution Process ("CIRP"). Once the Corporate Debtor is admitted into CIRP, the resolution professional collates all the outstanding claims from all classes of creditors against the Corporate Debtor. Once all such claims are crystallised, the IBC allows for resolution applicants to submit their respective resolution plans which include the treatment of the aforementioned claims. All such resolution plans are then put to vote before the committee of creditors who then vote for the most commercially viable resolution plan. The successful resolution plan then carries through the transition