The Supreme Court ruled that an approved resolution plan under the IBC is final and binding on all stakeholders, disallowing any reopening of claims or questioning of the CoC’s commercial judgment.

NCLAT reaffirmed that suspended directors lack the locus to challenge approved resolution plans, holding that the Committee of Creditors’ commercial wisdom under the IBC remains non-justiciable and immune from appellate interference.

The Delhi High Court held that winding-up proceedings pending before the High Court may be transferred to the NCLT under Section 434(1)(c) of the Companies Act, 2013, unless irreversible steps like asset sale have occurred, reaffirming the primacy of the IBC framework in corporate insolvency matters.

The Supreme Court ruled that once a resolution plan is approved under Section 31 of the IBC, it becomes legally binding on all stakeholders and extinguishes all unrecorded claims, ensuring finality and a “clean slate” for the corporate debtor’s revival.

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.