NCLAT clarifies that Adjudicating Authority cannot reject the liquidation decision of Committee of Creditors (CoC) – Bank of India Vs. Pradeep Kumar Goenka, RP of Agnipa Energo Pvt. Ltd. and Ors. – NCLAT New Delhi
Hon’ble NCLAT held that:
(i) The decision in Amit Bharana and Ors vs. Gian Chand Narang (2021) ibclaw.in 12 NCLAT is crystal clear and settle the principle of paramount supremacy of the commercial wisdom of the CoC.
(ii) There is hardly any scope for judicial interference on the part of the Adjudicating Authority or the Appellate Tribunal except ensuring that the Resolution Plan meets the requirements of the Code and the related regulations.
(iii) It is beyond doubt that the commercial wisdom of the CoC is required to be honoured in letter and spirit.
(iv) There is no role for Adjudicating Authority to interfere on such unfounded reasoning as recorded in the Impugned Order.
(v) The Impugned Order is found to be perverse and illegal.