SC slams NCLAT for ignoring precedent, calls move 'perverse'

SC HAS HELD THAT NCLAT COULD NOT HAVE IGNORED ITS JUDGMENT JUST BECAUSE IT WAS NOT CITED DURING PROCEEDINGS BEFORE NCLT

- Utkarsh Anand

NEW DELHI: The Supreme Court has criticised the National Company Law Appellate Tribunal (NCLAT) for disregarding a binding precedent set by the apex court to the effect that once a resolution plan is approved by the National Company Law Tribunal, claims not included within it cannot be revived later.

The apex court termed the tribunal's decision "perverse" in a judgment that has far-reaching consequences — simply because it reinforces the sanctity of the resolution process, paving the way for all parties involved to move forward after resolution, without worrying about the past.