After The Resolution Plan: When "Final" Isn't Final In Indian Insolvency

The New IBC Reality Check

For years, the finality of resolution plans under the IBC was considered sacrosanct. Once the NCLT approved a plan, stakeholders exhaled – or so they thought. The Supreme Court's verdict in MCC PTA India vs. JSW Steel has shaken that assumption to its core.

In practice after practice, we are now seeing creditor hesitations re-emerge. Lenders ask: "If even post-approval plans can be undone years later, what's the point of the CIRP?" It's a fair question, and one that legal counsel need to start answering, not just theoretically but transactionally.

What Just Happened in the JSW-Bhushan Steel Case?

In brief, the apex court found that:

• The Resolution Professional (RP) had failed to perform statutory duties under IBC.