NCLT Sanctions Resolution Plan After NCLAT Upholds Asset Valuation & Creditor Protections

This piece reports on the NCLT’s approval of a resolution plan that had earlier been challenged but was later upheld by NCLAT. The appellate tribunal had validated the valuation process and creditor-protection mechanisms, paving the way for final sanction. The article explains how the resolution plan aligned with fair-value and liquidation-value guidelines under Regulation 35 of the IBBI Regulations. It further highlights the significance of creditor confidence in valuation reports and the treatment of both secured and operational creditors. The NCLT’s decision demonstrates judicial deference to expert committees and the structured review system under IBC. It underlines the importance of transparent asset valuation, creditor hierarchy, and adherence to the IBC’s core objectives — value maximisation and timely resolution.