The IBC does not mandate specific uniform criteria for the invitation of Resolution Plans, and the Committee of Creditors (CoC) is allowed to set its criteria on a case-by-case basis – RKG Asset Management LLP – NCLT New Delhi Bench Court-III
The Applicant’s contention is that the said RFRP document contains onerous and discriminatory clauses that have skewed the resolution process of the Corporate Debtor in favour of some Resolution Applicants and thereby vitiated the Resolution Process.
NCLT New Delhi Bench Court-III held that it is well-settled proposition of law that the Adjudicating Authority cannot question the commercial wisdom of the CoC. It is up to the Committee of Creditors to decide certain aspects of the CIR Process, subject to the IB Code and Regulations. This includes the eligibility of Resolution Applicants. The IBC does not mandate specific uniform criteria for the invitation of Resolution Plans, and the Committee of Creditors is allowed to set its criteria on a case-by-case basis.
