Commercial wisdom of creditors prevails where a resolution plan is rejected and liquidation order shows no legal infirmity.

The commercial decision of the Committee of Creditors in the insolvency resolution process carries primacy, and judicial interference with that decision is confined to cases of legal infirmity. A resolution plan was rejected by a 76.02% voting share after consideration of feasibility and viability, and the liquidation order passed under the Insolvency and Bankruptcy Code was found to disclose no error warranting interference. The challenge therefore failed, and the liquidation order was upheld.

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Issues: Whether the liquidation order passed after rejection of the resolution plan by the Committee of Creditors called for interference in appeal.

Analysis: The appeal turned on the settled principle that the commercial decision of the Committee of Creditors carries primacy in the insolvency resolution process. The resolution plan had been rejected by a 76.02% voting share after consideration of feasibility and viability, and the Tribunal found no legal infirmity in the liquidation order passed under the Insolvency and Bankruptcy Code. The scope of interference with such a commercial decision was held to be confined and no ground was shown to displace the creditors' decision.

Conclusion: The challenge to the liquidation order failed and the order was upheld.

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