"The Resolution plan is not a sale or auction or recovery or liquidation but a resolution of the Corporate Debtor as a going concern." Referring relevant case law highlight on the importance of the statement.

In the matter of Binani Industries Limited v. Bank of Baroda & Anr , the National Company Law Appellate Tribunal (NCLAT), noticed the object of the Insolvency & Bankruptcy Code, 2016 and laid down that the first order objective is "resolution", the second order objective is "maximisation of value of assets of the 'Corporate Debtor" and the third order objective is "promoting entrepreneurship, availability of credit and balancing the interests of all the stakeholders." The Hon'ble Appellate Tribunal also held that the Insolvency & Bankruptcy Code defines 'Resolution Plan' as a plan for insolvency resolution of the 'Corporate Debtor' as a going concern, and not as a sale, or auction, or recovery or liquidation. The Tribunal held that the resolution plan is: not an auction: Each resolution plan has a different likelihood of turnaround depending on credibility and track record of 'Resolution Applicant' and feasibility and viability of a 'Resolution Plan' are not amenable to bidding or auction. It requires application of mind by the 'Financial Creditors' who understand the business well. not recovery: Recovery is an individual effort by a creditor to recover its dues through a process that has debtor and creditor on opposite sides. The 'I&B Code' prohibits and discourages recovery. not a liquidation: The IBC does not allow liquidation of a Corporate Debtor directly and permits liquidation only on failure of the resolution process. The 'Insolvency & Bankruptcy Code', therefore, does not allow liquidation of a 'Corporate Debtor' directly. It allows liquidation only on failure of 'Corporate Insolvency Resolution Process'. Insolvency & Bankruptcy Code rather facilitates and encourages resolution in several ways. Insolvency & Bankruptcy Code aims to balance the interests of all stakeholders.