The Supreme Court has held that a Committee of Creditors (CoC) cannot withdraw its approval to a resolution plan merely because the corporate debtor’s financial position improves while the plan awaits approval from the National Company Law Tribunal (NCLT).
The Bench of Justice J.B. Pardiwala and Justice K. Vinod Chandran ruled that a resolution plan approved by the CoC binds both the creditors and the successful resolution applicant. The company’s improved profitability alone cannot justify refusing approval if the plan satisfies the statutory requirements under the Insolvency and Bankruptcy Code, 2016 (IBC).
Buy Now: 90+ Supreme Court Judgments – September 2026
The judgment arose from an appeal by Bank of India and other creditors…