https://www.taxtmi.com/caselaws?id=447173 The NCLAT Principal Bench dismissed an appeal by operational creditors challenging a resolution plan approval. The appellants argued they were entitled to proceeds under the resolution plan despite their liquidation value being nil. The tribunal held that operational creditors are only entitled to minimum entitlement under Section 30(2)(b) of IBC, which in this case was nil given zero liquidation value. The Committee of Creditors (CoC) exercised commercial wisdom in not allocating amounts to other creditors while following the waterfall mechanism under Section 53. The tribunal found no material irregularity or legal contravention by the CoC, emphasizing that adjudicating authorities cannot substitute commercial wisdom unless there are express legal violations, reaffirming Supreme Court precedents on CoC supremacy. en-us Mon, 18 Dec 2023 00:00:00 +0530 Tue, 19 Dec 2023 18:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447173 The NCLAT Principal Bench dismissed an appeal by operational creditors challenging a resolution plan approval. The appellants argued they were entitled to proceeds under the resolution plan despite their liquidation value being nil. The tribunal held that operational creditors are only entitled to minimum entitlement under Section 30(2)(b) of IBC, which in this case was nil given zero liquidation value. The Committee of Creditors (CoC) exercised commercial wisdom in not allocating amounts to other creditors while following the waterfall mechanism under Section 53. The tribunal found no material irregularity or legal contravention by the CoC, emphasizing that adjudicating authorities cannot substitute commercial wisdom unless there are express legal violations, reaffirming Supreme Court precedents on CoC supremacy. Case-Laws Insolvency and Bankruptcy Mon, 18 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447173