The Supreme Court of India ("SC") has held that, in absence of an explicit provision, the National Company Law Tribunal ("NCLT") cannot permit any amendment, modification or withdrawal of Resolution Plan once approved by Committee of Creditors ("CoC").
This has been held by the Supreme Court vide its judgment dated 13.09.2021 in the matter of Ebix Singapore Private Limited vs. Committee of Creditors of Educomp Solutions Limited.
The SC observed that this would only create another tier of negotiations wholly unregulated by the Insolvency and Bankruptcy Code, 2016 ("IBC").
The SC buttressed its decision giving the rationale that "since the 330 days outer limit of the corporate insolvency resolution proceedings 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 impact on the Corporate Debtor, its creditors, and the economy at large as the liquidation value depletes with the passage of time."
The SC further observed that the Resolution Plan is not a contract which can be otherwise voidable on account of frustration, force majeure, or other such instancesas the process of a Resolution Plan is comprehensively regulated by the insolvency framework which is binding and irrevocable as between the CoC and the successful Resolution Applicant.
https://ibbi.gov.in//uploads/order/09603f1bdb3fb1e8bab88b34ee66a52c.pdf
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