In this case, shareholding of the Successful Resolution Applicant has been changed while Resolution Plan is pending before NCLT for approval. On IA, NCLT allow withdrawal of Rplan and forfeiture PGB and extended the CIRP time period. Hon’ble NCLAT has upheld the decision of NCLT Principal Bench, holding that: (i) The law is well settled and clear that even CoC cannot go back and pray for withdrawal of the Resolution Plan since the plan is clearly binding on the CoC but the above legal position and situation may not apply in a case where after approval of the Resolution Plan by the CoC, the Resolution Applicant himself has breached the terms and conditions and undertaking which was given by him as in the present case. (ii) Present is a case where in essence we may say it is a case of sale of Resolution Plan approved by the CoC to third party. CoC approves the Resolution Plan looking to the credentials of the Resolution Applicant and its credibility and finances. When very basis of Resolution Applicant is knocked out and it changes its constitution substantially the CoC cannot be faulted in view of breach of the conditions by the Resolution Applicant, application for approval of the Resolution Plan be withdrawn. (iii) CIRP Regulation 36B(4A) only contemplate one contingency that where performance security shall stand forfeited but the said provision does not exclude forfeiture of performance security in other conditions as contemplated in RFRP.
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