After considering the rival submissions, the Court upheld the NCLAT’s view that the CoC could not withdraw an approved resolution plan merely on the ground that the corporate debtor’s financial position had improved.
It held that the binding nature of a resolution plan operates equally against both creditors and resolution applicants.
Relying on its earlier judgment in Ebix Singapore v. Committee of Creditors of Educomp Solutions, the Bench held that the statutory insolvency framework does not contemplate such unilateral withdrawals or modifications of approved resolution plans.
The Court also took note of the resolution applicant’s argument that the creditors’ change of position was driven not by commercial wisdom but by a desire to…