'Creditors can't alter approved resolution plan'
Creditors' committees cannot change fund reallocation for dissenting members after a resolution plan is approved, the NCLAT ruled. The insolvency appellate tribunal dismissed Bank of Baroda's appeal in the Reliance Communications Infrastructure case, stating that once a plan is approved, its financial structure cannot be altered, even in the name of commercial wisdom.
Creditors' committees cannot change fund reallocation for dissenting members after a resolution plan is approved, the NCLAT ruled. The insolvency appellate tribunal dismissed Bank of Baroda's appeal in the Reliance Communications Infrastructure case, stating that once a plan is approved, its financial structure cannot be altered, even in the name of commercial wisdom. What's Your Reaction?
