TMI BlogResolution Plan Approvals: The Supreme Court's Clarification on NCLT and NCLAT's Jurisdiction in Insolvency Resolution.X X X X Extracts X X X X X X X X Extracts X X X X ..... orders, leading to a crucial legal discourse on the sanctity of the Committee of Creditors' (CoC) commercial wisdom and the precise extent of judicial review permissible under the IBC. Background: The core of the dispute emanated from a resolution plan submitted for the insolvency resolution of a company, which triggered a debate on the valuation of the company's assets and the commercial decisions made by the CoC. The NCLT, in its order dated 01.09.2021, and the NCLAT, through its judgment dated 19.01.2022, directed a revaluation of assets, raising significant questions about their jurisdiction and the scope of their authority to alter or influence the CoC's commercial decisions. Analysis of Issues: NCLT and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at when figures of crores are emerging stage-wise, then there is no harm to look at the Expert opinion , which the Adjudicating Authority-NCLT in this case has asked for . The Supreme Court's observation at the end of paragraph 30 underscores a critical aspect of judicial intervention in the corporate insolvency resolution process under the Insolvency and Bankruptcy Code (IBC). The Court noted that there had been no objections or challenges to the resolution plan pending approval before the National Company Law Tribunal (NCLT) by any party. This absence of objections signifies the unchallenged acceptance of the resolution plan by the stakeholders involved, highlighting the autonomy and the commercial wisdom of the Committee of Cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s when significant financial stakes are involved. Conclusion: The Supreme Court's decision to set aside the orders of the NCLT and NCLAT was rooted in a fundamental principle of the IBC: the limited scope of judicial intervention in the CoC's commercial decisions. The Court elucidated that the NCLT and NCLAT, by mandating a revaluation of assets, had unduly interfered with the commercial prerogatives of the CoC. This interference was deemed beyond their jurisdiction, highlighting a misapprehension of their role as adjudicating bodies under the IBC. This landmark judgment by the Supreme Court reasserts the autonomy of the CoC in the insolvency resolution process, delineating the boundaries of judicial review by the NCLT an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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