(Insolvency Resolution Process and Commercial Wisdom of CoC)
Insolvency and Bankruptcy Code, 2016 (IBC) - Sections 30(2), 30(4), 31, 61(3), 62; Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 - Regulation 39(1A) - This judgment addresses civil appeals filed by unsuccessful resolution applicants (Torrent Power, Vantage Point, and Jindal Power) challenging the approval of the resolution plan submitted by Sarda Energy and Minerals Limited (SEML) for SKS Power Generation (Chhattisgarh) Limited (Corporate Debtor).
The appellants alleged material irregularities in the Corporate Insolvency Resolution Process (CIRP), specifically that SEML improperly modified its resolution plan after the negotiation process. The alleged modifications included: (i) increasing its commitment for Bank Guarantees (BGs) from Rs. 103.39 crores to Rs.