A three-member bench of the National Company Law Appellate Tribunal (NCLAT), New Delhi comprising Justice M. Venugopal, Judicial Member, V.P. Singh and Dr. Ashok Kumar Mishra, Technical Members on Monday held that Commercial decision solely comes within the ambit of the Committee of Creditors.
In the present case, the distribution of the amount was made by the ‘Committee of Creditors’ resting on the total dues of individual Creditors and the same was not either whimsical or arbitrary in any manner. To put it differently, the ‘distribution of the amount’ between the Creditors provides equal treatment to all of them.
Also, that the Appellant was provided with a fair value as per the decision of the ‘CoC’ and the value proportionate to the dues was allotted the same as that of other Financial Creditors. Undoubtedly, the commercial decision and matters pertaining to it solely come within the ambit of the ‘Committee of Creditors’ who in the present case had approved the Resolution Plan with a majority of 75.70% affirmative votes.
In effect, the acceptance and approval of Resolution Plan of 4th Respondent/M/s Jagannath Financial and Advisory Pvt. Ltd. by the ‘AA’ as per its order did not suffer from any vice of material irregularities or patent illegalities in the eye of the law, as opined by the Appellate Tribunal. The Appeal was dismissed.