The Supreme Court on Monday held that the National Company Law Tribunal (NCLT) cannot permit withdrawals or modifications of a successful resolution plan, once it has been submitted to it after due compliance with the procedural requirements and timelines, solely at the behest of the resolution applicant.
This would only create another tier of negotiations wholly unregulated by the Insolvency and Bankruptcy Code (IBC), the apex court observed.
Since the 330 days outer limit of the Corporate Insolvency Resolution Proceedings (CIRP) under Section 12(3) of the IBC, including judicial proceedings, can be extended only in exceptional circumstances, this open-ended process for further negotiations or a withdrawal, would have a deleterious imp…
Read the full article at: https://www.thehindu.com/business/Industry/nclt-cant-allow-tweaks-in-a-successful-resolution-plan-sc/article36441244.ece
