A resolution plan submitted under the IBC, 2016 contains a provision PURPORTING to override or escape a mandatory requirement of the law (irrespective of the statutory dues it promises). The Adjudicating Authority:

Section 30(2)(e) of the IBC requires that a resolution plan must not contravene any provision of the law for the time being in force, and Section 31 conditions the sanction of the plan on its satisfying that requirement. A plan that seeks to escape a mandatory statutory regime cannot be approved; the NCLT will not sanction a plan the provisions of which are illegal or violate the law, despite the Committee of Creditors' commercial approval of the plan. The Supreme Court has acknowledged limits on the plan's freedom to override statutes that are not within the Code's binding-on-stakeholders remit. Legality is thus a precondition to sanction.