In the Union Bank of India v. Dinkar T. Venkatasubramanian and others, the National Company Law Appellate Tribunal (NCLAT) reaffirmed that a resolution plan approved by the Committee of Creditors (CoC) binds all stakeholders, including dissenting Financial Creditors, ensuring the stability of the corporate insolvency resolution process.

The Supreme Court’s judgment in Union Bank of India vs. Mr. Dinkar T. Venkatasubramanian & Ors. (2020) relates to the resolution plan approved by the Committee of Creditors (CoC) for a financially stressed corporate debtor. The case revolves around the effectiveness of the resolution plan and the binding effect on all stakeholders, including dissenting Financial Creditors (FCs).

The Appellate Tribunal, National Company Law Appellator (NCLAT), had set aside the resolution plan, citing certain procedural irregularities. However, the Supreme Court overturned NCLAT’s order, upholding the resolution plan. The Court ruled that the CoC’s approval of the resolution plan is binding on all stakeholders, including dissenting FCs. This decision emphasizes the importance of the CoC’s role in the insolvency resolution process and confirms that the plan is effective despite dissenting opinions. The judgment also acknowledges the limited scope of judicial review in resolution planning and enforcement. Ultimately, the Supreme Court’s decision provides clarity on the binding effect of the resolution plan, ensuring the efficient resolution of corporate insolvency.