NCLAT upheld the Committee of Creditors' (CoC) commercial wisdom ...

Commercial Wisdom of Creditors Prevails: Higher Bid Wins, Liquidation Process Validated Under Insolvency Code

April 10, 2025

Case Laws IBC AT

NCLAT upheld the Committee of Creditors' (CoC) commercial wisdom in rejecting the resolution plan. The sole CoC member abstained from voting, which was deemed a valid exercise of discretion. The liquidation application was filed with CoC's consent, and an e-auction was conducted where Respondents 4-7 submitted a successful bid of Rs. 20.63 Cr, significantly higher than the Appellant's offer of Rs. 8 Cr. The tribunal confirmed the legality of the liquidation process, emphasizing that the CoC's decision cannot be questioned. The sale certificate was issued to the successful bidders, and the appeal was consequently dismissed, upholding the statutory framework under the Insolvency and Bankruptcy Code.

View Source

← Previous Next →

NCLAT upheld the Committee of Creditors' (CoC) commercial wisdom ...

Commercial Wisdom of Creditors Prevails: Higher Bid Wins, Liquidation Process Validated Under Insolvency Code

April 10, 2025

Case Laws IBC AT

You may also like:

Stay of liquidation application - the legislature has consciously not provided any ground to challenge the "commercial wisdom" of the individual financial creditor or...

The NCLAT set aside the Adjudicating Authority's order rejecting the liquidation application filed by the Resolution Professional as recommended by the Committee of...

Jurisdiction - approval of resolution plan - Power of NCLT / NCLAT over commercial wisdom of the Committee of Creditors (CoC) - This Court has consistently held that the...

Challenge to an approved Resolution Plan where no consideration was given to payment to an Operational Creditor. The key points are: Section 30(2)(b) mandates that...

Interpretation of Regulation 21A of IBBI (Liquidation Process) Regulations, 2016 regarding secured creditor's obligation to realize security interest within stipulated...

Liability to contribute towards Liquidation Process Costs - scope of Financial Institution - The Tribunal found that the appellant, having invested a significant sum by...

The Committee of Creditors (CoC) with 100% vote share can directly proceed for liquidation of the Corporate Debtor without taking steps for resolution, as the power...

Liquidation of Corporate Debtor - This ‘Tribunal’ keeping in mind of a primordial fact that the decision of the ‘Committee of Creditors’ takes a pivotal seat based on...

Approval of Resolution Plan - The NCLAT found no error in the adjudicating authority's decision, emphasizing the paramount importance of the commercial wisdom of the...

IBC - Liquidation Process - Certain provisions of the regulation shall apply to the liquidation processes commencing on or after the date of the commencement of the...

The primary contention revolves around the approval process of the resolution plan by the Committee of Creditors (CoC) and the subsequent judicial scrutiny by the NCLT...

Liquidation process - right of the secured creditor - Respondent can realise a Security Interest as per provision Section 13(9) of the SARFAESI Act. Since the Respondent...

Liquidation of the Corporate Debtor - SRA has not made the payments within the timeline - The tribunal noted that the impugned order was based on the premise that not...

Approval of the resolution plan - ascertaining the liquidation value of the Corporate Debtor - The Appellant did not raise any objection regarding assessment of the...

Liquidation proceedings - Period of limitation - Auction of property of the corporate debtor - It is pertinent to mention that Liquidation Process Regulation 47 deals...

Quick Updates: