NCLT Cannot Interfere with CoC’s Commercial Decisions: Indian Bank Case Analysis

Indian Bank Vs Nimitya Hotel & Resorts Pvt. (NCLT Delhi)

In the case of Indian Bank Vs Nimitya Hotel & Resorts Pvt. Ltd., the National Company Law Tribunal (NCLT) Delhi was tasked with determining the validity and consideration of a settlement proposal under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, submitted by the Applicant. The central issue revolved around whether the Committee of Creditors (CoC) had duly considered the Applicant’s multiple settlement proposals, as directed by the National Company Law Appellate Tribunal (NCLAT), before rejecting them in favor of a Resolution Plan.

Background and Proceedings

1. Multiple Settlement Proposals: The Applicant submitted several settlement proposals on different dates, including 05.01.2022, 04.04.2022, 17.07.2022, 25.11.2022, 21.03.2023, 28.08.2023, and 10.10.2023. None of these proposals were accepted by the CoC, which consisted solely of Indian Bank as the Financial Creditor.

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