Case Law Details
In re UCAL Products Private Limited (NCLT Chennai)
Introduction: The National Company Law Tribunal (NCLT) Chennai recently rendered a significant judgment in the case of UCAL Products Private Limited. This ruling delves into the scope of judicial review under the Insolvency and Bankruptcy Code (IBC) and sheds light on the Adjudicating Authority’s role in light of key decisions made by the Hon’ble Supreme Court.
Subheading-wise Analysis:
1. Limited Judicial Review Under IBC: The NCLT Chennai’s ruling underscores the principle of limited judicial review available to the Adjudicating Authority under Sections 30(2) and 31 of the IBC. This implies that the Authority’s purview is confined to specific parameters, preventing it from intruding into the realm of commercial decisions made by the Committee of Creditors (CoC).
2. Adjudicating Authority and Commercial Aspects: The judgment reflects the Adjudicating Authority’s role in refraining from meddling with the commercial aspects of decisions executed by the CoC. The court emphasizes that these commercial determinations are collective choices of financial creditors based on their respective voting shares. The Adjudicating Authority’s responsibility involves ensuring that the resolution plan adheres to legal stipulations outlined in Section 30(2).
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