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Supreme Court of India 2021-12-17 allowed

Ngaitlang Dhar vs Panna Pragati Infrastructure Private Limited & Ors

Bench: 2 — B.R. Gavai

In Brief

Ngaitlang Dhar and the Resolution Professional appealed against the NCLAT's decision that set aside a Committee of Creditors' approval of Ngaitlang Dhar's Resolution Plan for Meghalaya Infratech Ltd. The NCLAT had found procedural irregularities, alleging the RP acted hastily by excluding another bidder (PPIPL) who was absent from the conclusive CoC meeting. The Supreme Court held that the CoC's commercial wisdom—its informed collective judgment through creditor voting—is non-justiciable except on narrow statutory grounds. The procedure followed was fair and transparent, with proper notice and equal opportunity given to all bidders. No material procedural defect occurred merely because an absent bidder was excluded when meeting timelines. The Court allowed the appeal, setting aside the NCLAT order.

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Insolvency and Bankruptcy Code 2016 Committee of Creditors Resolution Plans Commercial Wisdom Material Irregularity Corporate Insolvency Resolution Process Judicial Review

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