#Commercial Wisdom

NCLAT reinforces that resolution plans must provide full transparency in the Information Memorandum, including forensic audit details and asset valuation. Failure to disclose unexplained asset depletion or financial irregularities vitiates the plan's commercial wisdom, empowering adjudicating authorities to reject it outright.

NCLAT reinforces the primacy of the Committee of Creditors' commercial wisdom under the Insolvency and Bankruptcy Code, holding that the Adjudicating Authority cannot remand a resolution plan unless statutory grounds under Sections 30(2) or 31 are violated. The ruling clarifies the limited scope of judicial review over CoC-approved plans, impacting insolvency practitioners and creditors.

Supreme Court reaffirms that the commercial wisdom of the Committee of Creditors under the Insolvency and Bankruptcy Code is non-justiciable, and a dismissed Special Leave Petition cannot be recalled based on subsequent settlements. The Court held that only clerical errors or executory impossibility can warrant reconsideration, setting a high bar for reopening dismissed appeals.

Supreme Court affirms that Committee of Creditors' commercial decisions in IBC resolution plans are immune from judicial review unless statutory violations exist.

Supreme Court holds that unimplemented restructuring proposals cannot reset default date under Section 7 IBC; admission requires only proof of financial debt and default.