NCLT says Resolution Plan Cannot Override CIRP Process Safeguards

The CoC had approved Logenix Services Pvt. Ltd.'s resolution plan with 99.09% voting share, but the plan involved reducing the stipulated performance security from 20% of the plan value to ₹35 lakh after the plan had already been submitted. NCLT held that the arrangement violated Regulations 36B(4A) and 36B(5), and that the defects were not capable of rectification, leading to rejection of the resolution plan.