The court upheld the approval of the resolution plan, rejecting ...

Creditors' Wisdom Prevails: Apex Court Upholds CoC's Commercial Prudence in Resolution Plan Approval.

Case Laws IBC

October 29, 2024

The court upheld the approval of the resolution plan, rejecting the wrongful allocation of Rs. 79 lakhs as the liquidation value. The Supreme Court's decision in Amit Metaliks Limited, considering Sections 30(4)(2) and 53, held that the NCLAT rightly observed that the amendment to Section 30(4) amplified the CoC's considerations for exercising commercial wisdom regarding the viability and feasibility of the resolution plan, ensuring fair distribution among similarly situated creditors. The court relied on Amit Metaliks and Paridhi Finvest Pvt. Ltd., where the dissenting financial creditor's claim for the liquidation value payment was rejected. Despite the pending larger bench interpretation of Section 30(2)(b)(ii), the Supreme Court's decision in Amit Metaliks is subsisting, leading to the dismissal of the appeal.

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The court upheld the approval of the resolution plan, rejecting ...

Creditors' Wisdom Prevails: Apex Court Upholds CoC's Commercial Prudence in Resolution Plan Approval.

Case Laws IBC

October 29, 2024

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