The NCLAT, Principal Bench, clarified that directing the CoC to reconsider a resolution plan is not tantamount to approving it, emphasizing that the CoC’s commercial judgment governs the process unless there is material change warranting judicial intervention.

In IFCI Limited v. Ashok Kumar Sarawgi, RP for Kohinoor Steel Pvt. Ltd., the NCLAT, New Delhi Bench, held that a corporate guarantor’s liability continues independently despite liquidation of the borrower, and plans excluding valid claims can be set aside.

In Mathioli N. v. Reliance Asset Reconstruction Company Limited, the NCLAT, Chennai Bench, ruled that the replacement of a Resolution Professional must follow Section 27 of the Insolvency Code and be placed before the CoC, ensuring procedural fairness and due process.

The NCLAT ruled that exclusion of assets as margin money by the Adjudicating Authority was beyond its jurisdiction, as it interfered with the CoC’s commercial wisdom and amounted to enforcing security during moratorium, contrary to the Insolvency and Bankruptcy Code.

The Delhi High Court held that an arbitrator’s earlier judicial role does not warrant disqualification and that all excluded or unresolved claims stand extinguished once a resolution plan under Section 31 of the IBC is approved, ensuring finality for the corporate debtor.

The IBBI Disciplinary Committee suspended a Resolution Professional for gross negligence after he failed to seek timely CIRP extension and delayed the liquidation application despite CoC directions, holding such delay to be a breach of statutory duty under the Insolvency and Bankruptcy Code.

The Supreme Court held that verified and admitted homebuyer claims in a CIRP cannot be downgraded as belated claims for mere refunds. Once recognised under the Resolution Plan approved by the CoC and confirmed under Section 31, such homebuyers are entitled to possession and conveyance of their units in accordance with the binding plan.

The Appellate Tribunal reiterated that service of a Section 95(4)(b) demand notice is a mandatory statutory precondition for initiating insolvency against personal guarantors; however, once receipt and knowledge are admitted, technical service objections cannot defeat the proceedings.

Once a resolution plan is approved under Section 31 IBC, all earlier statutory dues, including government tax claims, stand extinguished and cannot be enforced post-approval.

NCLAT held that once CoC is constituted, CIRP withdrawal must comply with Section 12A read with Regulation 30A(1)(b), requiring 90% CoC approval—pre-CoC settlements cannot override this requirement.