Between The Lines... July 2022

Article by Vijay Pal Dalmia, Advocate, Supreme Court of India and Delhi High Court, Partner & Head of Intellectual Property Laws Division, Vaish Associates Advocates, India

I. Supreme Court: NCLT/NCLAT should not sit in appeal over commercial wisdom of the CoC to allow withdrawal of CIRP.

The Hon'ble Supreme Court ("SC") has in its judgment dated June 3, 2022, in the matter of Vallal RCK v. M/s. Siva Industries and Holdings Limited and Others [Civil Appeal Nos. 1811-1812 of 2022], held that the NCLT/NCLAT should not sit in appeal over commercial wisdom of the Committee of Creditors ("CoC") to allow withdrawal of the Corporate Insolvency Resolution Process ("CIRP").

Facts

IDBI Bank Limited had preferred an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("Code") for initiating the CIRP of M/s. Siva Industries and Holdings Limited ("Corporate Debtor") before the National Company Law Tribunal, Chennai ("NCLT"). On July 4, 2019, the