Supreme Court holds a Committee of Creditors cannot withdraw an approved resolution plan because the debtor's finances improved

26 October 2026

In Bank of India versus S.M. Kamal Pasha, a Supreme Court bench of Justices J.B. Pardiwala and K. Vinod Chandran has held that a Committee of Creditors cannot withdraw a resolution plan it has already approved merely because the corporate debtor's financial position has since improved. The Court held that once the creditors approve a plan, it binds both the Committee of Creditors and the successful resolution applicant even before the National Company Law Tribunal confirms it, and that withdrawal of the application is possible only until the Committee approves the plan. Relying on Ebix Singapore versus Committee of Creditors of Educomp Solutions, the Court said the Insolvency and Bankruptcy Code does not allow unilateral withdrawal or modification of an approved plan. The approved plan in the case was worth Rs 172.55 crore. The Court upheld the order of the National Company Law Appellate Tribunal.