The National Company Law Appellate Tribunal held that the Committee of Creditors is a business decision taken in the exercise of their commercial wisdom which is not amenable to judicial review on the ground that the Committee of Creditors is statutorily empowered to decide on the liquidation of the Corporate Debtor at any time before the confirmation of the resolution plan which is not subject to judicial review except for ensuring that the resolution plan meets the requirements of the IBC and related Regulations.
The Appellate Tribunal observed that the timely and quick resolution of stressed assets is key to the successful working of IBC.
The court allowed for liquidation on the ground of non-acceptance of the resolution plan by the successful resolution applicant after the expiry of the outer limit of CIRP i.e., 330 days citing the delay due to “deliberate procrastination” leading to diluting the value of the assets.
The matter was heard before Justice Ashok Bhushan (Chairperson), and Barun Mitra (Technical Member)
