SC upholds Varutha Developers resolution plan; rejects plea by unsuccessful bidder

In a ruling reinforcing the finality of insolvency proceedings under the Insolvency and Bankruptcy Code (IBC), the Supreme Court of India has dismissed a civil appeal filed by Ganga Construction (Consortium) challenging the resolution plan for Varutha Developers Pvt. Ltd.

A Bench comprising Justices Sanjay Kumar and K. Vinod Chandran upheld the resolution plan submitted by Manglam Multiplex Pvt. Ltd., affirming earlier orders of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT). The plan had been approved with 100% voting share by the committee of creditors.

The court examined the maintainability of the appeal and the locus standi of the appellant, noting that Ganga Construction, though a prospective resolution applicant, had not carried its participation in the process to its logical conclusion and had failed to submit a final resolution plan. It also did not challenge its elimination from the negotiation stage at the relevant time.

The appellant had alleged that Manglam Multiplex was ineligible under Section 29A of the IBC and that the corporate insolvency resolution process (CIRP) was conducted in a collusive and irregular manner. However, the successful resolution applicant countered that the allegations—particularly those linked to a share purchase agreement dated May 17, 2019—were misconceived, as the agreement was never acted upon and no shareholding was transferred. These findings had already been upheld in prior judicial proceedings.

Declining to interfere, the apex court observed that the appeal sought to reopen issues that had already attained finality and would disrupt a duly concluded resolution process.

With this, the court dismissed the appeal and upheld the resolution plan, endorsing the concurrent findings of the NCLT (January 7, 2025) and NCLAT (November 4, 2025). The ruling is significant as it discourages belated challenges by unsuccessful bidders and reinforces certainty and credibility in the IBC framework.

Manglam Multiplex Pvt. Ltd. was represented by senior advocates Mukul Rohatgi and Ritin Rai, along with a team from Karanjawala & Co.. M3M India Pvt. Ltd. was represented by senior advocate Abhishek Manu Singhvi and other counsels.

Also Read: NCLT approves Mangalam Multiplex resolution plan for Varutha Developers