In Brief
MCGM challenged a resolution plan approved by the NCLT for SevenHills, a company in insolvency proceedings, arguing that the plan implicated MCGM's properties and breached contractual obligations. The Supreme Court held that Section 238 of the Insolvency and Bankruptcy Code cannot override a municipal corporation's statutory rights under the MMC Act to control its properties. The Court ruled that a resolution plan affecting third-party assets cannot be approved when the debtor has breached contractual obligations, and that MCGM was not bound by counsel's written acceptance lacking requisite authority. The appeal was allowed.
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