Abid Industries Ltd filed petition for insolvency in NCLT, Delhi which admitted petition and subsequently resolution plan was submitted by RP to committee of creditors which was approved by 87% majority. Resolution plan

In the matter of Small Industries Development Bank of India vs. Tirupati Jute Industries Limited [CP (IB) 508/KB/18 and connected matters], the Adjudicating Authority(AA) noted that the resolution plan, which has been submitted for its approval, was subject to extinguishment of all claims (except criminal proceedings) against the Corporate Debtor, exemption of all taxes/dues by the Government/ local authorities, and closure of all proceedings pending against the Corporate Debtor relating to such dues. The Adjudicating Authority rejected the plan and ordered for liquidation. It observed that such a plan should not have been approved by the CoC, as it was not consistent with the provisions of section 30(2)(e) of the Insolvency & Bankruptcy Code. The resolution professional shall examine each resolution plan received by him to confirm that each resolution plan does not contravene any of the provisions of the law for the time being in force. AA also observed that the Resolution Professional did not give correct advice when he submitted the plan for approval of CoC and therefore, it would not be proper to appoint him as the Liquidator. Thus, resolution plan approved by COC and submitted to AA is not fair/just hence its tenability / justifiability is questionable and liable to be rejected.