NCLAT held that CoC-approved resolution plans may be rejected where CIRP lacks transparency and violates statutory provisions, particularly regarding avoidance transactions.

NCLAT reiterates that once debt and default are established, Section 7 admission is mandatory and viability or RBI framework objections cannot defeat CIRP initiation.

The NCLAT held that a resolution plan approved without complete disclosure and valuation of all assets, including development rights and third-party secured interests, suffers from material irregularity in the conduct of the CIRP and cannot be sustained merely on the basis of Committee of Creditors’ approval.