Section 54L

If the Adjudicating Authority is satisfied that the resolution plan as approved by the committee of creditors under sub- section (4) or sub-section (12), as the case may be of section 54K, subject to the conditions provided therein, meets the requirements as referred to in sub- section (2) of section 30, it shall, within thirty days of the receipt of such resolution plan, by order, approve the resolution plan: Provided that the Adjudicating Authority shall, before passing an order for approval of a resolution plan under this sub-section, satisfy itself that the resolution plan has provisions for its effective implementation. 146 Section 54L amended by Act No. 6 of 2026, sec. 37 (w.e.f. 26-05-2026), including expanded application of section 31, a defect-rectification proviso before rejection, and updated liquidation-order cross-references.

The order of approval under sub-section (1) shall have such effect as provided under sub-sections

,

,

,

and

of section 31, which shall, mutatis mutandis apply, to the proceedings under this Chapter.

Where the Adjudicating Authority is satisfied that the resolution plan does not conform to the requirements referred to in sub-section (1), it may, within thirty days of the receipt of such resolution plan, by an order, reject the resolution plan and pass an order under section 54N.147 Provided that the Adjudicating Authority may, before rejecting the resolution plan, give notice to the committee of creditors to rectify any defects in the resolution plan.

Notwithstanding anything to the contrary contained in this section, where the Adjudicating Authority has passed an order under sub-section (2) of section 54J and the resolution plan approved by the committee of creditors under sub- section (4) or sub-section (12), as the case may be of section 54K, does not result in the change in the management or control of the corporate debtor to a person who was not a promoter or in the management or control of the corporate debtor, the Adjudicating Authority shall pass an order —

rejecting such resolution plan;

terminating the pre-packaged insolvency resolution process and passing a liquidation order in respect of the corporate debtor as referred to in sub-clauses

,

,

,

and

of clause (b) of sub-section (1) of section 33; and

declaring that the pre-packaged insolvency resolution process costs, if any, shall be included as part of the liquidation costs for the purposes of liquidation of the corporate debtor.