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Advance Surfactants India Ltd vs State Bank Of India

National Company Law Appellate Tribunal8 October 2020

Ratio decidendi

The rule this decision rests on

The commercial wisdom of the Committee of Creditors in resolving to liquidate a corporate debtor is a business decision that is not open to challenge before the Adjudicating Authority or on appeal, save as permitted by the statute; accordingly, an appeal against a liquidation order founded on a CoC resolution taken with 100% voting share, which raises no ground beyond the CoC's commercial decision, is without merit and is dismissed.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHII.A. No.2291 of 2020INCompany Appeal (AT) (Insolvency) No. 361 of 2020In the matter of:

M/s. Advance Surfactants India Ltd. ....Appellant Vs. State Bank of India ....Respondent

Present:

Appellant: Mr. Deepak Khurana and Mr. Tejasv Anand, Advocates.

ORDER

08.10.2020: Heard learned counsel for the Appellant.

In terms of the impugned order dated 14th January, 2020, the Adjudicating

Authority (National Company Law Tribunal), Principal Bench, New Delhi,

ordered Corporate Debtor to be liquidated. Approval of the Adjudicating

Authority is based on recommendation of the Committee of Creditors which

passed resolution on 22nd November, 2019 recommending for liquidation of the

Corporate Debtor with 100% voting shares. In the face of this and the settled law

of land that the commercial wisdom of the Committee of Creditors is beyond the

pale of challenge in regard to the decision taken for liquidation of the Corporate

Debtor which essentially is a business decision resting upon their commercial

wisdom and keeping in view the provision of Section 33(2) of the Insolvency and

Contd/-...........

-2-

Bankruptcy Code, 2016 and the explanation added thereto, we find that this

appeal is devoid of merit. The same is dismissed. However, there shall be no

order as to costs.

[Justice Bansi Lal Bhat] Acting Chairperson

[Dr. Ashok Kumar Mishra] Member (Technical)

[Shreesha Merla] Member (Technical)

AR/g

I.A. No.2291 of 2020 IN Company Appeal (AT) (Insolvency) No. 361 of 2020

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