Resolution Plan Approved By CoC Binds All Stakeholders Including Dissenting Financial Creditor: NCLAT

The NCLAT ruled that once a resolution plan is approved by the Committee of Creditors (CoC) during insolvency proceedings, it is binding on all stakeholders, including dissenting financial creditors. The Court emphasized that dissenting creditors cannot block the implementation of the plan after the CoC’s approval. The ruling strengthens the legal framework for corporate insolvency resolution, ensuring that all parties comply with the agreed-upon terms. This decision helps in ensuring faster resolutions in insolvency cases, promoting a fair and efficient process for all creditors involved.