CHAPTER II CORPORATE INSOLVENCY RESOLUTION PROCESSCentral

Section 32 of The Insolvency and Bankruptcy Code, 2016. in hindi

Any appeal from an order approving the resolution plan shall be in the manner and on the grounds laid down in sub-section (3) of section 61.

Summary

Links appeals against plan approvals directly to the rules and grounds listed in Section 61(3).
Restricts the filing of appeals to specific, legally defined grounds to prevent unnecessary delays in the company's rebirth.
Establishes that the National Company Law Appellate Tribunal is the designated venue for challenging court-approved resolution plans.

Practical examples

1A supplier, Harish, is unhappy that his claims were heavily reduced in the approved plan of Zenith Foods. Under Section 32, Harish cannot file a generic civil suit; he must appeal to the National Company Law Appellate Tribunal strictly on the grounds mentioned in Section 61(3).

2A lender, Trust Bank, discovers that the approved resolution professional committed a material irregularity during the meetings. Trust Bank files an appeal under Section 32, ensuring their challenge is grounded in the formal procedures of the appellate tribunal.

FAQ

1. How can an order approving a resolution plan be challenged under the Insolvency and Bankruptcy Code, 2016?

Under Section 32 of the Insolvency and Bankruptcy Code, 2016, any appeal against a plan approval order must be filed in the manner and on the grounds specified in Section 61(3) of the Act.

2. Which authority hears appeals against the approval of a resolution plan under Section 32 of the Insolvency and Bankruptcy Code, 2016?

Under Section 32 of the Insolvency and Bankruptcy Code, 2016, read with Section 61, the appeal must be preferred before the National Company Law Appellate Tribunal.

3. Can an approved plan be appealed on any ground under Section 32 of the Insolvency and Bankruptcy Code, 2016?

No, Section 32 of the Insolvency and Bankruptcy Code, 2016 limits appeals strictly to the grounds defined in Section 61(3), such as violations of law, material irregularity by the professional, or unfair distribution to operational creditors.

Test yourself

Q1.Under Section 32 of the Insolvency and Bankruptcy Code, 2016, any appeal against an order approving a resolution plan must follow the grounds laid down in:

Q2.Under Section 32 of the Insolvency and Bankruptcy Code, 2016, which tribunal has the jurisdiction to hear an appeal challenging a plan approval under Section 31 of the Insolvency and Bankruptcy Code, 2016?

Q3.Under Section 32 of the Insolvency and Bankruptcy Code, 2016, which of the following is a valid ground for appealing an approved plan under Section 61(3) of the Insolvency and Bankruptcy Code, 2016?

31PreviousSection 31 Approval of resolution plan.32ANextSection 32A Liability for prior offences, etc.

←Section 31 Section 32A→