Fortune Chemicals Limited Vs Ashok Kumar Jaiswal (NCLAT Delhi)
NCLAT Delhi held that the commercial wisdom of the Committee of Creditors [CoC] in rejecting resolution plan and opting for liquidation is non-justiciable. Accordingly, held that NCLT rightly refused to intervene in decision of CoC.
Facts- The CIRP in relation to the Corporate Debtor was initiated on 17.09.2019. The appellant had submitted a resolution plan along with EMD of Rs. 25,00,000/- on 19.02.2021. On 03.04.2021, the Resolution Professional informed the Appellant, through email, that the resolution plan submitted by it has been rejected. The earnest money deposited was refunded to the Appellant on 10.05.2021 on request of the Appellant. On 01.10.2021, the Appellant filed application in which the impugned order dated 13.09.2022 was passed dismissing the said application.
Conclusion- It is the well settled law as per judgments by the Hon’ble Supreme Court in k. Sashidhar v Indian Overseas bank & Ors., (2019) 12 SCC 150 and this Tribunal in Harkirat Singh Bedi v Oriental Bank of Commerce & Ors., 2021 SCC Online NCLAT 4 that the commercial wisdom of the CoC in accepting or rejecting a resolution plan is “non-justiciable” and that the scope of judicial intervention is very limited.
