RCIL Insolvency: Bank Of Baroda Moves Supreme Court Against NCLAT Ruling On ₹195 Crore Reliance Bhutan Loan
Kirit Singhania
8 April 2026 9:09 PM IST
Bank of Baroda has approached the Supreme Court in the insolvency of Reliance Communications Infrastructure Ltd (RCIL), questioning an NCLAT ruling that lenders cannot revisit a resolution plan after it has been approved. The dispute centers on a Rs 195 crore Reliance Bhutan Loan and how it is to be distributed among creditors.
At the heart of the case is a decision taken by the Committee of Creditors (CoC) to reallocate this loan in favour of dissenting financial creditors. Bank of Baroda had backed that move.
IDBI Bank, which had opposed the plan earlier, challenged the reallocation before the National Company Law Tribunal in Mumbai. The tribunal agreed, holding that once a resolution plan is approved, its terms cannot be altered. It found the CoC's later decision to redistribute the loan impermissible. The NCLAT affirmed this view, reiterating that the distribution mechanism cannot be changed after approval.
Bank of Baroda, itself an assenting financial creditor, has now carried the issue to the Supreme Court.
The matter is expected to be heard on April 14 by a Bench of Justices Manoj Misra and Manmohan.
The insolvency process for RCIL began in September 2019. A resolution plan submitted by Reliance Projects & Property Management Services Ltd secured 67.97% of the CoC's vote and was later cleared by the NCLT. Under that plan, the Reliance Bhutan Loan was to go to assenting financial creditors.
Months later, acting on directions from the tribunal, the CoC revisited the distribution and passed a resolution reallocating the loan. IDBI Bank objected, arguing that the Insolvency and Bankruptcy Code does not allow changes to a plan once it has been approved. That argument has now found favour with both the NCLT and the NCLAT.