Archive · 26 Dec 2025
NCLAT Rules CoC Cannot Modify Approved Resolution Plan
The National Company Law Appellate Tribunal (NCLAT) has said that the Committee of Creditors (CoC) cannot change a resolution plan for a company after it has been approved.
This decision came after Bank of Baroda tried to change the plan for Reliance Communications Infrastructure Ltd (RCIL).
The NCLAT said that once the plan is approved, the CoC cannot change how the money is shared among the creditors.
Some banks, like IDBI Bank and State Bank of India, did not agree with the changes, and the NCLAT supported their stance.
The tribunal also said that the dissenting creditors should get their money as per the original plan.
This ruling ensures that the approved plan is followed and protects the rights of all creditors involved.
The NCLAT ruled that the CoC cannot modify a resolution plan after it has been approved.
The decision came in response to an appeal by Bank of Baroda in the RCIL insolvency case.
The resolution plan was approved by 67.97% of the CoC's vote share on August 5, 2021.
Dissenting creditors, including IDBI Bank and State Bank of India, objected to the reallocation of funds.
The NCLAT dismissed Bank of Baroda's appeal, upholding the original resolution plan.
- Who
- The Committee of Creditors (CoC), Bank of Baroda, IDBI Bank, State Bank of India, and the National Company Law Appellate Tribunal (NCLAT).
- What
- The NCLAT ruled that the CoC cannot modify or alter a resolution plan for reallocation of funds of dissenting creditors after it has been approved.
- When
- The NCLAT order was published on December 26, 2025, following the dismissal of Bank of Baroda's appeal.
- Where
- The proceedings took place in India, involving the NCLAT and NCLT.
- Why
- The ruling was made to ensure that the resolution plan approved by the CoC is not altered, protecting the rights of dissenting creditors.
- Committee of Creditors (CoC)
- A group of creditors who make decisions regarding the resolution plan of a company under insolvency proceedings.
- Reliance Communications Infrastructure Ltd (RCIL)
- The company involved in the insolvency proceedings.
- Reliance Projects & Property Management Services Ltd (RPPMSL)
- A Jio subsidiary that submitted the winning resolution plan for RCIL.
- National Company Law Appellate Tribunal (NCLAT)
- The appellate tribunal that dismissed the appeal by Bank of Baroda.
- National Company Law Tribunal (NCLT)
- The tribunal that initially approved the resolution plan and directed the CoC to convene a meeting.
- Bank of Baroda
- A financial creditor that initially approved the resolution plan but later sought reallocation of funds.
- IDBI Bank and State Bank of India
- Dissenting financial creditors who objected to the reallocation of funds.
- Reliance Bhutan Loan
- A loan that was to be assigned to the approving financial creditors as per the resolution plan.