1. Introduction
The Supreme Court’s ruling in Kalyani Transco v. M/s Bhushan
Power & Steel Ltd. & Ors. addresses whether procedural
irregularities that occur during the Corporate Insolvency
Resolution Process (“CIRP”) are
sufficient to undo an approved resolution plan under the Insolvency
and Bankruptcy Code, 2016 (“Code”). CIRP
leads to two possible outcomes; either the revival of a company
through resolution or liquidation. Traditionally, courts have
upheld the finality of a resolution plan once the Committee of
Creditors (“CoC”) and the adjudicating
authority approve it. However, this judgment signals a shift,
suggesting that if CIRP suffers from illegality or non-compliance,
judicial intervention may be warranted even…