Information Memorandum Based On Which Resolution Plan Is Submitted And Approved By CoC Cannot Be Modified: NCLAT

The NCLAT held that once a resolution plan under the IBC is submitted and approved based on the information memorandum, it cannot be modified by the resolution applicant. The case involved a dispute where the applicant sought to alter the plan post-approval by the creditors' committee. The tribunal stressed that such modifications could disrupt the resolution process, causing delays and affecting stakeholders' interests. The judgment underscores the importance of maintaining the finality of approved plans to uphold the sanctity of the IBC framework. It serves as a warning to resolution applicants against seeking post-approval changes and reinforces procedural discipline in insolvency proceedings.