SC rejects challenge to approval of resolution plan of Reliance Infratel

The Supreme Court on Tuesday rejected the challenge of operational creditors on approval of resolution plan of the Reliance Infratel Limited by NCLT saying the plan has been duly approved by a requisite majority of the Committee of Creditors in conformity with Insolvency and Bankruptcy Code (IBC).

A bench of Justices DY Chandrachud and M R Shah said that exclusion of some of the financial creditors from the Committee of Creditors (CoC) is of no consequence as the plan has been approved by a 100 per cent voting share of the CoC.

In the present case, the resolution plan has been duly approved by a requisite majority of the CoC in conformity with Section 30(4). Whether or not some of the financial creditors were required to be excluded from the CoC is of no consequence, once the plan is approved by a 100 per cent voting share of the CoC, the bench said.