Supreme Court’s Big IBC Judgment 2026 | CoC Cannot Withdraw Approved Resolution Plan |

The Supreme Court of India delivered an important judgment on 26 October 2026 concerning the withdrawal of an approved resolution plan under the Insolvency and Bankruptcy Code (IBC), 2016.

The Court ruled that the Committee of Creditors (CoC) cannot withdraw its approval of a resolution plan once it has been submitted to the NCLT, merely because the financial position of the corporate debtor has improved.

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

📌 Important Facts for Competitive Examinations:

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

Judgment Date: 26 October 2026

Case Citation: 2026 INSC 1154

Legislation: Insolvency and Bankruptcy Code, 2016

CoC: Committee of Creditors

NCLT: National Company Law Tribunal

NCLAT: National Company Law Appellate Tribunal

Key ruling: Once the CoC approves a resolution plan and submits it to the NCLT, it cannot unilaterally withdraw its approval merely because the corporate debtor’s financial position has improved.

📖 Important IBC Provisions:

Section 12A: Withdrawal of an insolvency application, subject to prescribed conditions.

Section 30: Submission and approval of a resolution plan.

Section 31: Approval of a resolution plan by the Adjudicating Authority.

🎯 Why Is This Judgment Important?

The judgment reinforces the binding nature of an approved resolution plan and promotes certainty and discipline in the corporate insolvency resolution process.

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

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