Resolution Plan Approved by 83.46% Creditors Cannot Be Challenged by Lone Homebuyer u/s 60(5) of IBC

The National Company Law Appellate Tribunal (NCLAT) has ruled that a lone homebuyer cannot challenge a resolution plan that has been approved by a vast majority of the creditors. The case involved a real estate company undergoing insolvency, where the resolution plan was approved by 83.46% of the Committee of Creditors (CoC). The NCLAT, referring to Section 61(3) of the Insolvency and Bankruptcy Code (IBC), held that the grounds for challenging an approved resolution plan are very limited. It emphasized that the commercial wisdom of the CoC, which represents the collective decision of the financial creditors, is paramount and should not be interfered with lightly. This judgment reinforces the supremacy of the CoC's decision in the insolvency process and limits the ability of individual dissenting creditors, including homebuyers, to derail a resolution plan that has been approved by the requisite majority.