The Supreme Court recently held, in Ramkrishna Forgings Limited v Ravindra Loonkar, Resolution Professional of ACIL Limited and Anr, that when the National Company Law Tribunal (NCLT) invoked section 31(2) of the Insolvency and Bankruptcy Code, 2016 (IBC), not to approve a resolution plan, it could do so only through a reasoned order.
Courts and tribunals have a duty to record cogent reasons for a decision or order. In the substantive dispute, the court held that if after repeated negotiations a resolution plan was submitted and approved by the committee of creditors (CoC), even by a majority vote, such commercial wisdom was not to be called into question or interfered with.
ACIL, the corporate debtor, was admitted into the IBC corpo…
Read the full article at: https://law.asia/acil-limited-insolvency-case/