The Tribunal held that the CoC, in its commercial wisdom, had not accepted the resolution plan and had directed the liquidation of the Corporate Debtor
The National Company Law Appellate Tribunal ( NCLAT ) New Delhi has held that the commercial wisdom of the Committee of Creditors ( CoC ) in rejecting a resolution plan and opting for liquidation is “non-justiciable”.
According to Section 164(2) of the Companies Act, Fortune Chemicals Limited, the Appellant-Director, was disqualified, making him ineligible to apply for a resolution under Sections 29A(e) and 29A(j) of the Insolvency & Bankruptcy Code, 2016 ( IBC ). The Tribunal ruled that it was not possible to overrule the CoC’s decision to reject the Appellant’s Resolution Plan….
