The National Company Law Appellate Tribunal (NCLAT) rejected the appeal filed by Bank of Baroda holding that the reallocation of the Reliance Bhutan Loan in favor of the dissenting financial creditors after the approval of the resolution plan is not permissible.
The Tribunal held that the Committee of Creditors (CoC) does not have the power to alter the distribution scheme after the approval of the resolution plan under Section 30(4) of the Insolvency and Bankruptcy Code, 2016.
The appeal has arisen out of the Corporate Insolvency Resolution Process of Reliance Communications Infrastructure Limited. A resolution plan filed by the successful resolution applicant was approved by the CoC with the majority vote in…