Between The Lines... March 2022

I. NCLAT: NO POSSIBILITY NEGOTIATING THE RESOLUTION PLAN IN THE INTERVENING PERIOD BETWEEN APPROVAL BY THE CoC, AND PENDING THE APPROVAL OF THE NCLT.

The Hon'ble National Company Law Appellate Tribunal, New Delhi ("NCLAT") has in its judgment dated January 27, 2022, in the matter of Union Bank of India v. Kapil Wadhawan and Others [Company Appeal (AT) (Insolvency) No. 370, 376-377 & 393 of 2021] ("Judgement") held that once the resolution plan is approved by the Committee of Creditors ("CoC"), the jurisdiction of the adjudicating authority is confined by the provisions of Section 31(1) of the Insolvency and Bankruptcy Code, 2016 ("IBC") to determining whether the requirements of Section 30(2) of the IBC have been fulfilled in the plan as approved by the CoC.