Mumbai, Oct. 27 — The Supreme Court on Monday ruled that lenders cannot withdraw an approved insolvency resolution plan merely because a company’s financial position has improved, potentially limiting creditors’ ability to seek better commercial terms.
A division bench of Justices J.B. Pardiwala and K. Vinod Chandran declined to interfere with the National Company Law Tribunal’s (NCLT) order rejecting the committee of creditors’ (CoC) attempt to withdraw the resolution plan for TD Toll Road Pvt. Ltd, a subsidiary of Reliance Infrastructure Ltd.
The bench remarked that under the Insolvency and Bankruptcy Code (IBC), neither the CoC nor the resolution applicant can withdraw the approved resolution merely by stating that certain…