In Brief
Reliance Infratel Limited, a corporate debtor in insolvency, had its resolution plan approved by the Committee of Creditors with 100% voting share. Operational creditors challenged this plan before the Supreme Court, arguing inadequate treatment and that preference share values should be separately distributed to them. The Court held that judicial review of resolution plans is strictly limited to whether statutory requirements under Section 30(2) are met. Courts cannot substitute their commercial judgment for that of the Committee of Creditors. The plan satisfied all statutory requirements—operational creditors received 19.62% recovery versus 10.32% for financial creditors, exceeding liquidation value entitlements. Fair and equitable treatment applies only within each creditor class, not across different classes. The appeal was dismissed, affirming that insolvency law vests commercial discretion solely in creditors, with courts performing limited statutory review only.
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