Navigating Shareholder Rights in Corporate Insolvency: An Analysis of NCLAT’s Decision on the issue of Locus Standi

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..... UNAL , CHENNAI Context and Background This case, adjudicated by the National Company Law Appellate Tribunal (NCLAT), Chennai, revolves around complex matters of corporate insolvency under the Insolvency and Bankruptcy Code, 2016 (IBC). The primary contention involves challenges against the approved resolution plan and related procedural aspects under the IBC. The case highlights the intr .....

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..... dation as stakeholders, their role in the CIRP is limited. They are not entitled to challenge the decisions of the CoC, which are predominantly commercial. Judicial Review of CoC s Commercial Wisdom: Another critical aspect was the extent to which judicial review can be exercised over the CoC's decisions. The Tribunal emphasized that the commercial wisdom of the CoC is paramount and .....

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..... ase intricately discusses the role and limitations of shareholders in the context of insolvency proceedings. It highlights that their participation is restricted and does not extend to influencing or challenging the CIRP s course as determined by the CoC. Implications and Significance Reaffirmation of Creditor-Centric Approach: The judgment reaffirms the creditor-centric approach o .....

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