Dissenting Financial Creditor Only Entitled To Liquidation Value Of Secured Interest U/S 30(2)(b) Of IBC, Commercial Wisdom Of CoC Sacrosanct: NCLAT

The NCLAT ruled that a dissenting financial creditor is only entitled to the liquidation value of their secured interest under Section 30(2)(b) of the IBC, emphasizing the sacrosanct nature of the Committee of Creditors’ (CoC) commercial wisdom. The case involved a dispute over the distribution of proceeds in an insolvency resolution plan. The NCLAT held that the dissenting creditor’s entitlement is limited to the liquidation value of their secured interest, as determined by the CoC. This ruling reinforces the authority of the CoC in insolvency proceedings and the importance of adhering to the IBC’s provisions.