Settlement Plan U/S 12A Of IBC Cannot Be Considered By CoC After Approval Of Resolution Plan: NCLAT

The National Company Law Appellate Tribunal (NCLAT) has ruled that a settlement plan under Section 12A of the Insolvency and Bankruptcy Code (IBC) cannot be considered by the Committee of Creditors (CoC) after the approval of a resolution plan. The case involved a corporate debtor who sought to present a settlement plan after the CoC had already approved a resolution plan. The NCLAT found that once a resolution plan is approved, the CoC cannot consider a settlement plan under Section 12A. The judgment clarifies the procedural requirements for insolvency resolution and reinforces the finality of approved resolution plans. This decision ensures the stability and predictability of the insolvency resolution process.