Bankruptcy code: NCLT can’t evaluate CoC decision on resolution plan, says SC


Bankruptcy code: NCLT can’t evaluate CoC decision on resolution plan, says SC

The Supreme Court has ruled that the National Company Law Tribunal (NCLT) has no authority to evaluate the commercial decision of the committee of creditors (CoC) to approve or reject a proposed resolution plan as there is complete autonomy regarding the commercial decision or wisdom of the financial creditors.

While considering a batch of appeal led by the case, K. Sashidhar vs. Indian Overseas Bank, a bench led by Justice AM Khanwilkar said that there is no provision in the Insolvency and Bankruptcy Code that empowers the resolution professional, the adjudicating authorities (NCLT & NCLAT), to reverse the “commercial decision” of the CoC. Read More

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