9911796707
TMI Blog2020 (8) TMI 750X X X X Extracts X X X X X X X X Extracts X X X X ..... - HELD THAT:- The Committee of Creditors, Acting on the basis of evaluation of Proposed Resolution Plan and assessment made by their team of experts, expressed their opinion after due deliberations in CoC Meetings through voting as per voting share which is a collective business decision. The commercial wisdom of the Financial Creditors individually or their collective decision is beyond the pale of challenge before the Adjudicating Authority and the same has been made non-justiciable. Hon ble Apex Court in K. SASHIDHAR VERSUS INDIAN OVERSEAS BANK OTHERS [2019 (2) TMI 1043 - SUPREME COURT], d ealing with the scope of an appeal under Section 61(1) of the I B Code, the Hon ble Apex Court noticed that apart from other grounds the appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o merits in the appeal - Appeal dismissed. - Company Appeal (AT) (Insolvency) No. 207-208 of 2020 - - - Dated:- 12-3-2020 - Justice S. J. Mukhopadhaya Chairperson And Justice Bansi Lal Bhat Member (Judicial) For the Appellants : Mr. Rajeev Ranjan, Senior Advocate with Mr. S. C. Das, Mr. Saurav, Mr. N. S. Ahluwalia and Mr. Deepak Chawla, Mr. Adhish Sharma, Mr. Neeraj and Ms. Aliya Durafshan, Advocates. For the Respondents : Mr. Krishnan Venugopal, Senior Advocate with Mr. Saurav Pander and Ms. Charu Bansal, Advocates for Resolution Professional. Mr. Ramji Srinivasan, Senior Advocate with Mr. Karan Kanwal, Mr. Kunal Godhwani and Mr. Rishab Kapoor, Advocates, Mr. Amit S. Chaddha and Ms. Pratiksha Mishra, Advocates JUDGMENT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ground of being non-speaking cryptic orders without application of mind. 3. Having heard learned counsel for the parties, we are of the considered opinion that the Committee of Creditors, Acting on the basis of evaluation of Proposed Resolution Plan and assessment made by their team of experts, expressed their opinion after due deliberations in CoC Meetings through voting as per voting share which is a collective business decision. The commercial wisdom of the Financial Creditors individually or their collective decision is beyond the pale of challenge before the Adjudicating Authority and the same has been made non-justiciable. This is the dictum of Hon ble Apex Court in K. Sashidhar vs. Indian Overseas Bank , (2019) 12 SCC 150: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on Plan on the basis of quantitative analysis. 5. The dictum of law laid down in K. Sashidhar vs. Indian Overseas Bank (Supra) stands reiterated in Committee of Creditors of Essar Steel India Limited Vs. Satish Kumar Gupta and Others , (2019) SCC OnLine SC 1478 wherein the Hon ble Apex Court observed as under:- 48. Thus, it is clear that the limited judicial review available, which can in no circumstance trespass upon a business decision of the majority of the Committee of Creditors, has to be within the four corners of Section 30(2) of the Code, insofar as the Adjudicating Authority is concerned, and Section 32 read with Section 61(3) of the Code, insofar as the Appellate Tribunal is concerned, the parameters of such rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... solution plan. Whereas, from the legislative history, there is contraindication that the commercial or business decisions of the financial creditors are not open to any judicial review by the adjudicating authority or the appellate authority. 51. Suffice it to observe that in the I B Code and the regulations framed thereunder as applicable in October 2017, there was no need for the dissenting financial creditors to record reasons for disapproving or rejecting a resolution plan. Further, as aforementioned, there is no provision in the I B Code which empowers the adjudicating authority (NCLT) to oversee the justness of the approach of the dissenting financial creditors in rejecting the proposed resolution plan or to engage in judici ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 31 of the I B Code dealing with approval of the resolution plan. 6. Thus, it is the settled proposition of law that the commercial wisdom of the Committee of Creditors in approving or rejecting a resolution plan is essentially based on a business decision, which involves evaluation of the Resolution Plan based on its feasibility besides the Committee of Creditors being fully informed about the viability of the Corporate Debtor. Such commercial wisdom of the Committee of Creditors with requisite voting majority is non-justiciable and the discretion on Adjudicating Authority is circumscribed to scrutiny of Resolution Plan as approved by the requisite majority voting share of the Financial Creditors. The enquiry postulated unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
