NCLT/NCLAT cannot sit in an appeal over commercial wisdom of Committee of Creditors: Supreme Court

The Court held that interference by the NCLT and NCLAT is not warranted unless it is found that the decision of the CoC is capricious, arbitrary, irrational or violative of the statute and rules.
Supreme Court, NCLAT
Supreme Court, NCLAT

The Supreme Court recently highlighted the need for minimal judicial interference within the framework of the Insolvency and Bankruptcy Code (IBC) by reiterating that National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) should not sit in appeal over the commercial wisdom of the Committee of Creditors (CoC) (Vallal RCK v M/s Siva Industries and Holdings Limited & Ors).

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