#resolution plan binding

NCLAT rules that surplus cash flows generated during CIRP, if not explicitly addressed in the approved Resolution Plan, must be distributed among financial creditors as per the Section 53 waterfall mechanism. This binding precedent reinforces the sanctity of statutory distribution over contractual silence in insolvency proceedings.

The Madhya Pradesh High Court has ruled that once a resolution plan is approved under IBC Section 31, state revenue authorities are legally bound to update land records to reflect the new owner’s name. Failure to do so undermines the statutory efficacy of the insolvency outcome and impedes the successor’s ability to secure financing, obtain NOCs, or enforce title rights - directly harming corporate recovery and financial stability.