While sanctioning the scheme of arrangement, NCLT has no jurisdiction to sit in appeal over the commercial wisdom of the class of person who with their eyes open have given their approval, even if, the Court is of the view that better scheme could have been framed – Marathon Nextgen Townships Pvt. Ltd. and Anr. Vs. Regional Director, Western Region, Ministry of Corporate Affairs – NCLAT New Delhi
Hon’ble NCLAT held that while sanctioning the scheme of arrangement if the Court comes to a conclusion that the provisions of statute have been complied with; and that there is no violation of any provision of law, or the proposed scheme of compromise or arrangement is not unquestionable, unconscionable or contrary to public policy, then the NCLT has no further jurisdiction to sit in appeal over the commercial wisdom of the class of person who with their eyes open have given their approval, even if, the Court is of the view that better scheme could have been framed.