Power to CoC to Recall its Approval?
In Jaypee Kensingon Boulevard Apartments Welfare Association vs. NBCC (India) Limited [1] , the Hon’ble Supreme Court had held that in case a resolution plan requires modification, the Adjudicating Authority must send back the resolution plan to committee of creditors (CoC) to consider the modifications, so as to afford an opportunity to resolution applicant to modify the plan, and CoC may then re-consider the plan and vote upon same. Similar understanding reflects even from the Hon’ble Supreme Court decision in Committee of Creditors of Essar Steel India Ltd vs. Satish Kumar Gupta [2] , wherein it had affirmed this power to remand back. Now, recently, in Bank of Maharashtra vs. Videocon Industries Ltd. [3] , the primary issue that arose for consideration before the National Company Law Appellate Tribunal, New Delhi (NCLAT) was whether CoC can review its decision of approving the resolution plan. Facts of the case: a) The dissenting financial creditor filed an appeal before N...