The Supreme Court held that the Committee of Creditors cannot withdraw an approved resolution plan after submission to the NCLT and directed examination of the company’s current financial position. – Bank of India & Ors. v. S.M. Kamal Pasha & Ors.
The Supreme Court of India has reiterated that the Committee of Creditors (CoC) cannot withdraw its approval of a resolution plan after the plan has been submitted to the National Company Law Tribunal (NCLT) for approval. The Court held that an improvement in a financially distressed company’s position cannot, by itself, justify refusing approval to a resolution plan that satisfies the requirements of the Insolvency and Bankruptcy Code, 2016 (IBC).
Background
The dispute arose after the CoC…