The Supreme Court Division Bench comprising justices Dr. D.Y. Chandrachud and M.R. Shah was hearing the case of Ebix Singapore Private Limited v. Committee of Creditors of Educomp Solutions Limited and Another, REED 2021 SC 09523, and held that the existing insolvency framework in India provides no scope for effecting further modifications or withdrawals of CoC-approved Resolution Plans, at the behest of the successful Resolution Applicant, once the plan has been submitted to the AA.
A Resolution Applicant, after obtaining the financial information of the CD through the informational utilities and perusing the IM, is assumed to have analyzed the risks in the business of the CD and submitted a considered proposal. A submitted Resolution Plan is binding and irrevocable as between the CoC and the successful Resolution Applicant in terms of the provisions of the IBC and the CIRP Regulations.
The Supreme Court has declared the position in the law to not enable a withdrawal or modification to a successful Resolution Applicant after its submission to the Adjudicating Authority. Long delays in approving the Resolution Plan by the Adjudicating Authority affect the subsequent implementation of the plan.
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