In Brief
The Supreme Court held that NCLT and NCLAT cannot judicially interfere with the Committee of Creditors' (CoC) commercial wisdom when approving withdrawal of Corporate Insolvency Resolution Process (CIRP) under Section 12A of the Insolvency and Bankruptcy Code. Where 90% of creditors approve settlement and CIRP withdrawal, courts may only intervene if the decision is wholly capricious, arbitrary, or irrational. The 90% threshold reflects legislative policy ensuring all creditors collectively assess viability and participate in omnibus settlement. The Court allowed the appellant's appeal, quashing NCLT and NCLAT orders that rejected the CoC-approved settlement plan, and permitted CIRP withdrawal despite the lower courts' characterization of the plan as a business restructuring rather than a settlement.
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