Commercial Wisdom Of CoC In Opting For Liquidation And Rejecting Resolution Plan Of Ineligible Applicant Is “Non-Justiciable”: NCLAT

The NCLAT ruled that the commercial wisdom of the Committee of Creditors (CoC) in opting for liquidation and rejecting a resolution plan from an ineligible applicant is non-justiciable. The case involved a dispute over the CoC's decision to liquidate a company rather than accept a resolution plan. The NCLAT upheld the CoC's decision, emphasizing that courts cannot interfere with the commercial decisions made by the CoC, as long as they are within the legal framework. The ruling reinforced the principle of allowing the CoC to exercise its discretion without judicial interference in matters of corporate insolvency.