A Division Bench of the Supreme Court comprising Justices Dr. Dhananjaya Y. Chandrachud and M. R. Shah held on Tuesday, The jurisdiction of the Adjudicating Authority (NCLT) was confined by the provisions of Section 31(1) to determining whether the requirements of Section 30(2) have been fulfilled in the plan as approved by the CoC.
In the present case, the resolution plan has been duly approved by a requisite majority of the CoC in conformity with Section 30(4). Whether or not some of the financial creditors were required to be excluded from the CoC is of no consequence, once the plan is approved by a 100 per cent voting share of the CoC. The jurisdiction of the Adjudicating Authority was confined by the provisions of Section 31(1) to determining whether the requirements of Section 30(2) have been fulfilled in the plan as approved by the CoC. As such, once the requirements of the statute have been duly fulfilled, the decisions of the Adjudicating Authority and the Appellate Authority are in conformity with the law. For the above reasons, the Supreme Court found no merit in the appeal. The appeal shall accordingly stand dismissed.