Ngaitlang Dhar Vs. Panna Pragati Infrastructure Private Limited & Ors.
Civil Appeal No. 3665-3666 of 2020
The Hon’ble Supreme Court in its judgment dated 17.12.2021 passed in the matter of Ngaitlang Dhar Vs. Panna Pragati Infrastructure Private Limited & Ors being Civil Appeal No. 3665-3666 of 2020 held that “it is trite law that ‘commercial wisdom’ of the CoC has been given paramount status without any judicial intervention, for ensuring completion of the processes within the timelines prescribed by the IBC.”
The Supreme Court reiterated that it is not open to the Adjudicating Authority (the NCLT) or the Appellate Authority (the NCLAT) to take into consideration any other factor other than the one specified in Section 30(2) or Section 61(3) of the IBC.
In the said Judgment it was also elucidated that the opinion expressed by the CoC after due deliberations in the meetings through voting, as per voting shares, is the collective business decision and that the decision of the CoC’s ‘commercial wisdom’ is non-justiciable, except on limited grounds as are available for challenge under Section 30(2) or Section 61(3) of the IBC.