No Withdrawal Of Application Or Approved Resolution Plan Once CoC Approves Plan & It Is Placed Before Adjudicating Authority: Supreme Court

KanoonHQ Legal Gazette · AI-generated brief from the source linked below. How briefs are made

Published 28 October 2026

Case: Not stated in source
Court: Supreme Court of India
Bench: Not stated in source
Citation: Not stated in source
Statutes: Insolvency and Bankruptcy Code, 2016 — s.30(2)
Source: Verdictum

Bottom Line Up Front (BLUF)

The Supreme Court held that an application or an approved resolution plan cannot be withdrawn once the Committee of Creditors (CoC) has approved the plan and it has been placed before the Adjudicating Authority. The Court stated that the principles from the Ebix Singapore dictum apply to the CoC, and improved profitability alone is not a sufficient reason to refuse approval if the plan meets the requirements of Section 30(2) of the Insolvency and Bankruptcy Code, 2016.

Ratio Decidendi · Legal Principle Established

Once a resolution plan has been approved by the Committee of Creditors and placed before the Adjudicating Authority, neither the application for corporate insolvency resolution nor the approved resolution plan can be withdrawn. The Adjudicating Authority must approve a resolution plan if it satisfies the conditions laid down in Section 30(2) of the Insolvency and Bankruptcy Code, 2016, and cannot reject it solely on the ground of improved profitability of the Corporate Debtor.

Practice & Procedural Impact for Advocates

Advocates should advise clients that the window for withdrawing a resolution application or plan closes once CoC approval is obtained and the plan is submitted to the Adjudicating Authority. Litigants should focus on ensuring resolution plans meet the statutory requirements of Section 30(2) of the IBC, as improved profitability alone will not be a ground for rejection by the Adjudicating Authority.

Key Legal Takeaways

1Withdrawal of a resolution application or plan is not permissible after CoC approval and submission to the Adjudicating Authority.
2The Ebix Singapore dictum applies to the Committee of Creditors' decisions regarding resolution plans.
3Improved profitability of the Corporate Debtor is not a valid ground for the Adjudicating Authority to reject a CoC-approved resolution plan that complies with Section 30(2) of the IBC.

The Legal Issue The Supreme Court addressed the question of whether an application for corporate insolvency resolution or an approved resolution plan can be withdrawn after the Committee of Creditors (CoC) has approved the plan and it has been presented to the Adjudicating Authority. The Court also considered if improved profitability of the Corporate Debtor, subsequent to the approval, could be a reason for the Adjudicating Authority to refuse approval of a resolution plan that otherwise meets statutory requirements.

Court's Reasoning The Supreme Court held that the principles established in the Ebix Singapore dictum apply squarely to the Committee of Creditors. This means that once the CoC has approved a resolution plan and it has been placed before the Adjudicating Authority, neither the application nor the approved resolution plan can be withdrawn. The Court emphasized that the Adjudicating Authority's role is to ensure that the resolution plan complies with the requirements of Section 30(2) of the Insolvency and Bankruptcy Code, 2016. The Court clarified that improved profitability of the Corporate Debtor, occurring after the CoC's approval, cannot be the sole reason for the Adjudicating Authority to refuse to approve a resolution plan that otherwise satisfies the statutory conditions.

What Follows The decision clarifies the finality of the resolution process once the CoC has approved a plan and it is before the Adjudicating Authority. Adjudicating Authorities are bound to approve resolution plans that meet the criteria under Section 30(2) of the Insolvency and Bankruptcy Code, 2016, irrespective of subsequent improvements in the Corporate Debtor's financial position. This reinforces the time-bound nature and certainty of the insolvency resolution framework.