The commercial wisdom of CoC is not to be interfered with, excepting the limited scope as provided under Sections 30 and 31 of the I&B Code, says SC

The Supreme Court has ruled that the commercial wisdom of the Committee of Creditors (CoC) in approving resolution plans under the Insolvency and Bankruptcy Code is not to be interfered with. This principle is to be upheld, except in the very limited circumstances provided for under Sections 30 and 31 of the Code. The judgement clarifies that the NCLAT had wrongly set aside orders from the NCLT regarding the approval of a resolution plan.

IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION 
CIVIL APPEAL NOS.2943­2944 OF 2020

KALPRAJ DHARAMSHI & ANR.    ...APPELLANT(S)

VERSUS

KOTAK INVESTMENT ADVISORS LTD.
& ANR. .... RESPONDENT(S)

WITH
CIVIL APPEAL NOS.3138­3139 OF 2020
CIVIL APPEAL NO. 2949­2950 OF 2020
CIVIL APPEAL NO. 847­848 /2021
[D.NO.24125 OF 2020]

J U D G M E N T  

B.R. GAVAI, J. 

1. Leave to file Civil Appeal in Diary No. 24125 of 2020 is granted. 

2. All these appeals, assail the judgment and orderof the National Company Law Appellate Tribunal, New Delhi(hereinafter referred to as “NCLAT”) dated 5.8.2020, passed in Company Appeal (AT) (Insolvency) Nos. 344­345 of 2020. 

3. By the said judgment and order dated 5.8.2020, NCLAT has allowed the appeals filed by Kotak InvestmentAdvisors   Limited   (hereinafter   referred   to   as   “KIAL”), respondent No.1 herein,  aggrieved by two separate orders dated   28.11.2019   passed   by   National   Company   LawTribunal, Mumbai Bench (hereinafter referred to as “NCLT”or “Adjudicating Authority”) in M.A. No.1039 of 2019 andM.A. No. 691 of 2019.  NCLAT has set aside the said orders passed in the said M.As.  M.A. No.1039 of 2019 was filed by KIAL objecting to grant of approval to the resolution plansubmitted by Kalpraj Dharamshi and Rekha Jhunjhunwala,a consortium, (hereinafter referred to as “Kalpraj”), which isappellant in Civil Appeal Nos. 2943­2944 of 2020.   NCLT has rejected the said M.A.   Whereas, M.A. No. 691 of 2019 was   filed   by   the   Resolution   Professional   of   Ricoh   India Limited (hereinafter referred to as “the Corporate Debtor”) for grant of approval to the Resolution Plan submitted byKalpraj.  NCLT has allowed the said M.A. and approved the resolution plan submitted by Kalpraj.    

To know more in details find the attachment file