The court clarified the appealability of NCLT's rejection of resolution plans under the Insolvency and Bankruptcy Code, confirming that aggrieved parties can appeal under Section 61.

JUDGMENT

In W.P.(C)No.32152 of 2025, the petitioner challenges Ext.P3 order dated 21.08.2025 of the National Company Law Tribunal(NCLT), Kochi Bench in IA (IBC)(Plan)/04/KOB/2025 in CP(IBC)/20/KOB/2023, whereas in W.P.(C)No.32146 of 2025, the petitioner challenges the very same order produced as Ext.P2 of the National Company Law Tribunal, Kochi Bench in IA (IBC) (Plan)/04/KOB/2025 in CP(IBC)/20/KOB/2023 and also Ext.P3 consequential order.

2. W.P.(C)No.32152 of 2025 is filed by a member of the Committee of Creditors holding 80.11% voting shares in the Committee of Creditors, whereas W.P.(C)No.32146 of 2025 is filed by a person who has extended a personal guarantee as against loans taken by the 7^th respondent company, which is undergoing a corporate insolvency resolution process. By Ext.P3 order, which is impugned in W.P.(C)No.32152 of 2025, the resolution plan submitted by the Resolution Professional was rejected by the NCLT, Kochi and thereafter decided to give an opportunity to the Corporate Debtor, the Applicant in the Section 7 petition, the Resolution Professional, and the Secured Financial Creditor to appear before the Adjudicating Authority and provide their submissions in this regard, to arrive at a legally sound and just conclusion to proceed further.

3. The learned Senior Counsel appearing for the petitioner in W.P.(C) No.32152 of 2025 as well as the learned counsel appearing for the petitioner in W.P.(C) No.32146 of 2025 submits that Ext.P3 order of the NCLT, rejecting the resolution plan is not an appealable order and therefore, the only remedy available to them is to approach this Court filing the above writ petitions. In view of the said contention raised by the petitioners, the first issue to be resolved is as to whether Ext.P3 order, rejecting the resolution proposal submitted by the Resolution Professional, is appealable or not.

4. Section 30 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as ‘the IBC 2016’) deals with ‘submission of resolution plan’. Section 31 of the IBC 2016 deals with ‘approval of resolution plan’, which reads as follows:

“31. Approval of resolution plan.--

(1) If the Adjudicating Authority is satisfied that the resolution plan as approved by the committee of creditors under sub- section (4) of Section 30 meets the requirements as referred to in sub-section (2) of , it shall by order approve the resolution plan which shall be binding on the corporate debtor and its employees, members, creditors,[including the Central Government, any State Government or any local authority to whom a debt in respect of the payment of dues arising under any law for the time being in force, such as authorities to whom statutory dues are owed,] guarantors and other stakeholders involved in the resolution plan.

[Provided that the Adjudicating Authority shall, before passing an order for approval of resolution plan under this sub- section, satisfy that the resolution plan has provisions for its effective implementation.]

(2) Where the Adjudicating Authority is satisfied that the resolution plan does not confirm to the requirements referred to in sub-section (1), it may, by an order , reject the resolution plan.

(3) After the order of approval under sub-section (1),--

(a)the moratorium order passed by the Adjudicating Authority under Section 14 shall cease to have effect; and

(b)the resolution professional shall forward all records relating to the conduct of the corporate insolvency resolution process and the resolution plan to the Board to be recorded on its database.

[(4)The resolution applicant shall, pursuant to the resolution plan approved under sub-section (1), obtain the necessary approval required under any law for the time being in force within a period of one year from the date of approval of the resolution plan by the Adjudicating Authority under sub- section (1) or within such period as provided for in such law, whichever is later:

Provided that where the resolution plan contains a provis