Power Trust Vs Bhuvan Madan (Supreme Court of India)
Supreme Court held that commercial wisdom of Committee of Creditors [CoC] is non-justiciable. Stalling CIRP on account of settlement proposal without approval by CoC is not justifiable.
Facts- Present appeal has been instituted by Power Trust, a promoter of Hiranmaye Energy Ltd. under Section 62, Insolvency and Bankruptcy Code, 2016, challenging order dated 25.01.2024 by National Company Law Appellate Tribunal, Principal Bench, New Delhi. By the impugned order, NCLAT has upheld order dated 02.01.2024 by National Company Law Tribunal, Kolkata Bench, whereby the NCLT admitted an application filed under Section 7, IBC by REC Ltd. and initiated the corporate insolvency resolution process against the Corporate Debtor.
Conclusion- Held that this Court stalled the CIRP vide order dated 12.09.2025 subject to the Appellant depositing Rs. 25 crore and furnishing a bank guarantee of Rs. 100 crore. At this stage, DVC intervened and vehemently opposed delay in final approval of its resolution plan. Having considered these concerns of the successful Resolution Applicant, we are in agreement with the Respondents that any further direction to stall the CIRP on the plea of further settlement proposals at the behest of the Appellant would be prejudicial to the interest of a swift and timely resolution of insolvency process.
