The Supreme Court of India has reaffirmed the principle of limited judicial interference in approved resolution plans under the Insolvency and Bankruptcy Code, 2016 (IBC). In a landmark ruling in Piramal Capital and Housing Finance Limited vs. 63 Moons Technologies Limited and Ors., the Court emphasized that the role of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) is restricted to checking legal compliance, not evaluating commercial merits. JSA’s Sidharth Sethi, Shreya Sircar, and Shivangi Pathak analyzed the judgment, highlighting the Court’s reinforcement of the commercial wisdom of the Committee of Creditors (CoC) and the limited scope of judicial review. The ruling underscores the importance of finality in approved resolution plans and the need for minimal judicial interference in the IBC process.
The article was authored by Sidharth Sethi; Partner, and Shreya Sircar; Partner, published in Mondaq.
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Shreya is a multi-disciplinary dispute resolution practitioner, experienced litigator, and Partner at JSA.