Resolution plan approved committee creditors binding charter defining scope acquired rights corporate debtor assets

Under Section 31(1) of the Insolvency and Bankruptcy Code, 2016, a resolution plan approved by the Committee of Creditors and the Adjudicating Authority constitutes a binding charter governing all stakeholders and the new management taking over the corporate debtor. An Adjudicating Authority while considering an incidental application filed by a third party cannot modify, enlarge, or alter the terms of an approved resolution plan to confer better rights or an absolute title upon the successful resolution applicant beyond what was recognized and voted upon by the Committee of Creditors. Granting additional ownership rights not established within the resolution plan itself amounts to an impermissible alteration of the approved plan. (Gloster Limited v. Gloster Cables Limited & Ors. | 2026 INSC 81)