🔍 What Happened

The National Company Law Appellate Tribunal ruled that insolvency courts cannot impose new commercial terms on approved resolution plans.

🧾 Summary

The appellate tribunal clarified that once a resolution plan under the IBC is approved by the Committee of Creditors (CoC), tribunals must limit their role to checking legal compliance. Courts cannot rewrite business terms, alter equity structures, or add conditions not proposed by stakeholders. This ensures certainty for investors and prevents judicial overreach into commercial decisions. The ruling is especially relevant for MSMEs and stressed companies seeking revival through resolution plans.

🟢 Public Takeaway

For businesses under insolvency, approved revival plans won’t be altered unpredictably by courts, ensuring stability.