In Brief
This appeal challenges an NCLAT order modifying an insolvency resolution plan on grounds of discrimination between financial creditors. The resolution applicant offered varying percentages of admitted claims to different creditors. The court held that since the plan was prepared and approved before amended regulations took effect, it cannot be retroactively modified to equalize payments. The differential treatment of creditors—based on the corporate debtor's liquidation value and negotiated terms—was justified. The NCLAT's order imposing additional financial obligations on the resolution applicant was set aside, and the NCLT's original approval was restored. The appeal succeeded.
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