Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Insolvency and Bankruptcy Code Material irregularity |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Insolvency and Bankruptcy Code, 2016 (31 of 2016) |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Insolvency and Bankruptcy Code, 2016 – ‘Material irregularity’ – When not – Corporate Insolvency Resolution Process (CIRP) initiated in respect of Corporate Debtor – Resolution Plans were received from four prospective Resolution Applicants including the appellant, respondent no.2 and other two – In the meeting of Committee of Creditors (CoC), the appellant emerged as H-1 bidder – Resolution Plan of the appellant approved by CoC, further approved by NCLT – Respondent No.1- contended that in the proceedings before the CoC it had sought some time to submit its revised Resolution Plan and had accordingly submitted the same – Filed application seeking direction to the Resolution Professional (RP) to take on record its revised Resolution Plan – Rejected by NCLT – RP sought approval to the Resolution Plan submitted by the appellant – Allowed by NCLT – Both the orders challenged by respondent no.1 before NCLAT – Appeals allowed – Held: Commercial wisdom of the CoC should not be interfered with, it is only the process of decision making, which can be challenged if there is any material irregularity in the said proceedings – In the present case, CoC evaluated the Resolution Plans of all the four prospective Resolution Applicants – Equal opportunity was accorded to all – However, the respondent no.1, without improving his bid amount, went on insisting for more time – Procedure adopted by the RP as well as the CoC was fair, transparent and equitable – No material irregularity – NCLAT erred in interfering with the decision of the CoC which was duly approved by the NCLT – Impugned judgment set aside.Insolvency and Bankruptcy Code, 2016 – ss.30(2), 61(3) – Held: Opinion expressed by Committee of Creditors (CoC) after due deliberations in the meetings through voting, as per voting shares,is the collective business decision – Decision of the CoC’s ‘commercial wisdom’ is non-justiciable, except on limited grounds for challenge u/ss.30(2) or 61(3). |
Judge | Hon'ble Mr. Justice Bhushan Ramkrishna Gavai |
Neutral Citation | 2021 INSC 923 |
Petitioner | Ngaitlang Dhar |
Respondent | Panna Pragati Infrastructure Private Limited & Ors. |
SCR | [2021] 9 S.C.R. 1009 |
Judgement Date | 2021-12-17 |
Case Number | 3665 |
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