In Brief
A corporate debtor's promoter filed a settlement proposal, which was approved by 94.23% of creditors. The RP sought to withdraw the insolvency process, but the NCLT and NCLAT rejected the application, characterizing it as a "business restructuring plan" rather than a settlement. The Supreme Court held that when 90% or more of creditors approve a settlement plan and withdrawal under Section 12A of the Insolvency and Bankruptcy Code after full deliberation, courts cannot review the commercial wisdom of the creditors' committee. Judicial interference is only permissible if the decision is wholly capricious or violates statutory provisions. The Court allowed the appeal and directed approval of the withdrawal application.
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