In Brief
The Supreme Court held that when the Committee of Creditors approves withdrawal of a Corporate Insolvency Resolution Process with a 90% voting majority as required by Section 12A of the Insolvency and Bankruptcy Code, 2016, courts cannot overrule this decision merely by disagreeing with the creditors' commercial judgment. The appellant-promoter's settlement plan was approved by the CoC with 94.23% votes after full deliberations, but the NCLT and NCLAT rejected it, characterizing it as a Business Restructuring Plan rather than a settlement. The Court allowed the appeal, affirming that the NCLT and NCLAT erred in interfering with the creditors' collective wisdom. Minimal judicial intervention is essential to preserve the statutory scheme's efficacy; courts may only intervene when a CoC decision is wholly capricious, arbitrary, or violates the statute.
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