CoC ‘s Commercial wisdom in rejecting resolution plans and opting for liquidation is “Non-Justiciable”: NCLAT

The National Company Law Appellate Tribunal (NCLAT) ruled that the Committee of Creditors (COC) has the discretion to reject resolution plans during insolvency proceedings and opt for liquidation, and such decisions are non-justiciable. The tribunal upheld the decision of the COC to reject resolution plans, emphasizing that the commercial wisdom of the creditors should not be questioned by courts. This ruling reinforces the autonomy of the COC in deciding whether to proceed with a resolution plan or liquidate the company, providing clarity on the insolvency process under the Insolvency and Bankruptcy Code.