In Brief
Karad Urban Cooperative Bank Ltd challenged a NCLAT decision that had set aside an NCLT order confirming a resolution plan in corporate insolvency proceedings. The Supreme Court held that a corporate debtor's promoter/director cannot object to the CoC's bidding and commercial decisions—particularly when they attended CoC meetings without raising concerns—on grounds of alleged breach of confidentiality, defective invitation terms, or absent asset assurances. The Court allowed the appeal, finding the NCLAT wrongly interfered with creditor decisions and allowed a conflicted promoter to challenge arm's-length commercial judgments properly made by the independent CoC."
The lawyer headnote and full judgment text are available to registered users.