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2022 (2) TMI 674 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHIApproval of the Resolution Plan approved by the Committee of Creditors (CoC) - Sections 31(1) and 60(5) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT:- In the present case as recorded by the Adjudicating Authority, the liquidation value of the Corporate Debtor as per the valuation report is 4.25 crores and the amount proposed in the Resolution Plan is ₹ 4.50 crores which is more than the liquidation value. We address to the contention raised by the Learned Counsel for the Appellant that the valuation itself is erroneous and therefore allotting ₹ 50 lacs when the claim is ₹ 6,29,18,121/- is unjustified. The Hon’ble Supreme Court in ‘Duncan Industries Pvt Ltd. Vs. State of U.P. & Ors.’ [1999 (12) TMI 857 - SUPREME COURT] has held that ‘the question of valuation is basically question of facts and this Court is normally reluctant to interfere with the finding on such a question of fact if it is based on relevant material on record’. Be that as it may, the record shows that the average of two closest estimates given by the valuers was taken into consideration as a fair value and the liquidation value. It is an admitted fact that the Plan has successfully been implemented and all payments due under the said Resolution Plan have been paid. It is a well settled preposition of law by the Hon’ble Supreme Court in a catena of Judgments that the commercial wisdom of CoC is non-justiciable except on the grounds of Section 30(2). In the instant case, we do not find any material on record to substantiate that the approval of the Resolution Plan is in contravention of any law for the time being in force - It is well settled that Insolvency and Bankruptcy Code overrides other law and under Section 31 of the Code, the Resolution Plan approved by the CoC and meeting the requirements under Section 30(2) has to be approved by the Adjudicating Authority. Commercial Wisdom of the CoC with respect to viability and financial decision taken while evaluating the Resolution Plan has to prevail, unless the Plan approved by the CoC is in conflict with any provision of the law and the distribution mechanisation suppressed the interest of the stakeholders besides taking care of the maximisation of the value of the assets of the corporate debtor, judicial intervention would not be warranted. Appeal dismissed.
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