The NCLT affirmed the Committee of Creditors' (CoC) decision to approve the GSW Enterprise resolution plan, emphasizing that courts should respect CoC's commercial wisdom when statutory requirements are met.
GSW Enterprise Resolution Plan Approved
The National Company Law Tribunal (NCLT) has upheld the resolution plan for GSW Enterprise, reinforcing the principle that courts should not interfere with the Committee of Creditors' (CoC) commercial decisions when such plans comply with statutory requisites. This ruling is significant in the context of the Insolvency and Bankruptcy Code (IBC), where the CoC is entrusted with the discretion to assess and endorse resolution plans.
The NCLT clarified that the CoC operates within a framework defined by law and its decisions can only be challenged on substantive grounds of statutory non-compliance. It noted that the role of the court is not to second-guess the business judgments made by the CoC.
This decision serves as a reminder for practitioners involved in insolvency matters about the sanctity of the decisions made by the CoC. It underscores the importance of ensuring that resolution plans are comprehensive and statutorily sound to withstand judicial scrutiny.
Citations
- GSW Enterprise (2026) NCLT
