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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