In Brief
The Supreme Court set aside an NCLAT order that had remanded a resolution plan approval back to the Committee of Creditors. The case involved a sugar company in insolvency proceedings. The NCLAT had challenged the NCLT's approval on grounds of viability, alleged breach of confidentiality over liquidation values, disputed ethanol plant assets, and procedural defects in the invitation process. The Supreme Court held that the commercial wisdom of creditors in approving resolution plans is not justiciable and cannot be lightly interfered with. Mere suspicion of confidentiality breach without proof, awareness and acceptance of asset disputes, and retroactive application of regulatory amendments were all rejected as valid grounds to set aside the approval. The Court restored the NCLT's order approving the resolution plan.
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