Supreme Court bars litigation on resolution plans before submission to NCLT

Appeals over approved RPs will go directly to NCLAT, may land up in SC only after NCLAT decision on the case

In the course of its order on Essar Steel, which is undergoing the insolvency proceedings, the Supreme Court on Thursday forbade litigations from any stakeholder over a resolution plan before it is approved by the Committee of Creditors (CoC) and the National Company Law Tribunal (NCLT).

Moreover, appeals over an approved resolution plan will go directly to the National Company Appellate Law Tribunal (NCLAT) and may eventually land up in the Supreme Court only after NCLAT has decided on the case.

“Once approved by the Committee of Creditors, the resolution plan is to be submitted to the Adjudicating Authority under Section 31