NCLAT Upholds Approved Resolution Plan For M/S Adico Forge Pvt Ltd Which Secured Workers' Provident Fund And Gratuity Dues In Full

The NCLAT upheld the approved resolution plan for M/S Adico Forge Pvt. Ltd., emphasizing the limited jurisdiction of the NCLT and NCLAT in reviewing CoC-approved plans. The case involved a dispute over the resolution plan’s adequacy in securing workers’ provident fund and gratuity dues. The NCLAT bench, led by Justice Ashok Bhushan, reiterated that the tribunal’s role is to ensure compliance with Section 30(2) of the IBC, not to reassess the commercial decisions of the CoC. The tribunal found that the resolution plan adequately covered the workers’ claims, including provident fund and gratuity dues, which were paid in full. The NCLAT’s decision underscores the principle that once a resolution plan is approved by the CoC and meets the statutory requirements, the tribunal’s jurisdiction is limited to ensuring compliance with the IBC, rather than re-evaluating the plan’s commercial aspects. This ruling reinforces the finality of CoC-approved plans in the insolvency resolution process.