Application For Approval Of Resolution Plan Can't Be Rejected Solely Based On Withdrawal Of Consent By One Of Coc Members: NCLAT

The NCLAT held that resolution plan approval can't be rejected solely because one CoC member withdraws consent, provided the plan meets other statutory requirements. The case involved a dissenting financial institution opposing an otherwise compliant plan. The tribunal emphasized that collective CoC decision-making prevails over individual member changes of heart. This judgment prevents single creditors from derailing viable resolutions and upholds the majority principle in insolvency decisions. While protecting minority creditor rights through other mechanisms, it ensures resolution plans aren't jeopardized by last-minute opt-outs. The ruling strengthens the finality of CoC approvals and provides stability to the resolution process.