New Delhi, Dec. 30 -- The Committee of Creditors (CoC) cannot modify or alter a resolution plan to reallocate funds meant for dissenting creditors once the plan has been approved, the National Company Law Appellate Tribunal (NCLAT) has held.

NCLAT Rejects Bank of Baroda's Appeal

Dismissing an appeal filed by Bank of Baroda (BoB) in the insolvency proceedings of Reliance Communications Infrastructure Ltd (RCIL), a two-member NCLAT bench ruled that assenting members of the CoC cannot change the financial structure of an approved resolution plan, reported PTI.

While the CoC is entitled to exercise its commercial wisdom on all aspects of a resolution plan, including the manner of distribution, once that wisdom is exercised and the plan is ...