Unsuccessful Resolution Applicant Cannot Challenge Approval of Resolution Plan by CoC: NCLT

The National Company Law Tribunal (NCLT) ruled that an unsuccessful resolution applicant cannot challenge the approval of a resolution plan by the Committee of Creditors (CoC) under the Insolvency and Bankruptcy Code (IBC). In the case at hand, the applicant, who had not been selected for the resolution plan, sought to challenge the decision. The NCLT held that once the CoC has approved a resolution plan, the unsuccessful applicant does not have the standing to challenge it in court. The tribunal emphasized that the IBC process aims to conclude insolvency resolution efficiently and effectively, and interference by unsuccessful applicants would disrupt this process. The ruling clarifies the legal boundaries of challenge in the IBC proceedings, ensuring that the CoC's decision remains final unless there is a clear violation of statutory provisions.