SC – Withdrawal Approved IBC Resolution Plan for Improved Value of CD – Illegal
Judgment dated 26.10.2026 of the Supreme Court in Civil Appeal No.12045 of 2026 of the Bank of India Vs. S.M.Kamal Pasha and others
Whether the Committee of Creditors (CoC), after approving the Resolution Plan by a majority, as provided under the Insolvency and Bankruptcy Code, 2016 (IBC), can seek withdrawal of the same before the Adjudicating Authority (AA), the National Company Law Tribunal (NCLT); on grounds of delay, not attributable to the Successful Resolution Applicant (SRA) but on the plea that the financial position of the Corporate Debtor (CD) has improved considerably, is the vexing question posed. 2.
The NCLAT held that the Committee of Creditors has no jurisdiction to decide on withdrawal of the Resolution Plan. The NCLAT while rejecting the application filed by the RP on behalf of the CoC to withdraw the approval to the Resolution Plan, revived the application filed by the RP for confirmation of the Resolution Plan; IA No.1505 of 2021 for consideration by the NCLT. IA No.1679 of 2025 filed by the holding company, the 4th respondent herein was also directed to be considered. The SRA too was permitted to raise their contentions.
The appeal is filed by the members of the CoC, six in number of which the 1st appellant is the applicant under Section 7 of the IBC; the financial creditor, who initiated the CIRP against the CD. The 1st and 2nd respondents together, as a consortium had submitted the Resolution Plan, which was approved by the CoC, the consortium referred to herein as the SRA. The 3rd respondent is the RP, and the 4th respondent is the holding company of the CD.

