Summary
- The NCLT Mumbai has ruled that a Committee of Creditors (CoC)-approved resolution plan is binding on government creditors, affirming the commercial wisdom of the CoC in the RSAL Steel Private Limited case.
- The resolution plan, submitted by L. G. Balakrishnan and Bros Limited, received unanimous support and was approved despite being below the liquidation value.
- The Tribunal dismissed claims for CIRP costs related to disputed properties during the moratorium, emphasizing the limited scope for judicial review over CoC decisions.
- This decision reinforces the finality of resolution plans under the Insolvency and Bankruptcy Code, potentially impacting future creditor claims against corporate debtors undergoing insolvency proceedings.
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