Creditors' Committee Cannot Replace Approved Applicant with Non-Participant in Insolvency Process; Tribunal Overturns Decision.

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....The Committee of Creditors (CoC) does not have jurisdiction to substitute the successful resolution applicant (SRA) with another entity who was not part of the Corporate Insolvency Resolution Process (CIRP). The CIRP Regulations mandate that only resolution plans from prospective resolution applicants (PRAs) in the final list can be considered. Substituting a non-PRA as the SRA is a breach of Regulation 39(1)(B). The CoC cannot modify an approved resolution plan by substituting the SRA. The Adjudicating Authority erred in approving the modified resolution plan with the substituted SRA. The order approving the plan is unsustainable. The Appellate Tribunal set aside the order and directed the Resolution Professional to issue a fresh Form-G inviting resolution applicants and complete the CIRP within 90 days.....