Supreme Court’s Big Ruling on CoC & Resolution Plans | Insolvency and Bankruptcy Code (IBC), 2016 |

In October 2026, the Supreme Court ruled that a Committee of Creditors (CoC) cannot withdraw its approval of a resolution plan submitted to the NCLT merely because the debtor company’s financial condition has improved under which framework?

✅ Correct Answer: Insolvency and Bankruptcy Code (IBC), 2016

On 26 October 2026, the Supreme Court of India delivered an important judgment in Bank of India & Others v. S.M. Kamal Pasha & Others (2026 INSC 1154).

The Court held that once the Committee of Creditors approves a resolution plan and submits it to the National Company Law Tribunal (NCLT), the CoC cannot unilaterally withdraw or modify its approval merely because the corporate debtor’s financial position has improved.

📌 Important Facts for Competitive Exams:

Law: Insolvency and Bankruptcy Code (IBC), 2016

Court: Supreme Court of India

Judgment date: 26 October 2026

Case: Bank of India & Others v. S.M. Kamal Pasha & Others

Case citation: 2026 INSC 1154

Bench: Justice J.B. Pardiwala and Justice K. Vinod Chandran

CoC: Committee of Creditors

NCLT: National Company Law Tribunal

Key provisions: Sections 12A, 30 and 31 of the IBC

Key ruling: An approved resolution plan cannot be unilaterally withdrawn by the CoC after submission to the adjudicating authority.

Important principle: Improvement in the corporate debtor’s financial position alone is not sufficient grounds to withdraw the approved plan.

🎯 Useful for: UPSC, SSC, Banking, Railway, State PCS and other competitive examinations.

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