Appeal dismissed challenging rejection of Resolution Plan revision. Upheld approved Plan; Success Applicant can't withdraw.

The National Company Law Appellate Tribunal dismissed an appeal challenging the rejection of a revision of an approved Resolution Plan by the Adjudicating Authority. The Tribunal held that the Appellant, being aware of the Corporate Debtor's financial condition, could not seek revision based on known information. It emphasized the importance of upholding approved Resolution Plans and highlighted that a Successful Resolution Applicant cannot withdraw a plan. The Tribunal considered the MSME status of the Debtor and the economic impact of COVID-19, deciding to waive off costs while affirming the dismissal of the appeal.

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Issues: Dismissal of revision of approved Resolution Plan by Adjudicating Authority; Appellant's knowledge of Corporate Debtor's financial condition; Permissibility of seeking revision of approved Resolution Plan; Applicability of Section 61(3) of the Insolvency and Bankruptcy Code, 2016; Economic impact of COVID-19 on MSMEs.

The judgment by the National Company Law Appellate Tribunal, New Delhi, involved an appeal against the dismissal of a revision of an approved Resolution Plan by the Adjudicating Authority. The Appellant's prayer for revision was turned down based on the Adjudicating Authority's observation that the Appellant, being aware of the financial condition of the Corporate Debtor, cannot claim ignorance. The Appellate Tribunal considered the fact that the Corporate Debtor was an MSME and the Appellant, as the sole Resolution Applicant, had knowledge of the financial health of the Corporate Debtor. The Tribunal referred to previous judgments, highlighting that a Successful Resolution Applicant cannot withdraw an approved Resolution Plan. It was determined that seeking revision on the grounds of financial condition, known to the Appellant, did not constitute a material irregularity under Section 61(3) of the Insolvency and Bankruptcy Code, 2016.

The Appellate Tribunal concluded that there was no merit in the appeal and dismissed it. However, considering the MSME status of the Corporate Debtor and the global economic slowdown due to the COVID-19 pandemic, the Tribunal decided to waive off the costs imposed by the Adjudicating Authority. The order to set aside the imposition of costs was communicated to the Adjudicating Authority. The judgment highlighted the importance of upholding approved Resolution Plans, especially when the Applicant is aware of the financial condition of the Corporate Debtor. The economic impact of the pandemic on MSMEs was also considered in the decision to waive off costs, showing a balance between legal principles and economic realities.

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