Commercial Wisdom Of The Committee Of Creditors Under The IBC, 2016: Scope And Limitations
- IJLLR Journal
- Feb 7
- 1 min read
Ms. Priya Yadav, Ph.D., Research Scholar at School of Law, Sushant University, Gurugram.
Dr. Anjali Sehrawat, Associate Professor, School of Law, Sushant University, Gurugram.
Dr. Deepak Miglani, Associate Professor, School of Law, Sushant University, Gurugram.
ABSTRACT
By emphasizing creditor-driven decision-making, the Insolvency and Bankruptcy Code, 2016 (IBC) represents a revolutionary change in India’s insolvency structure. The idea of the Committee of Creditors’ (CoC) “commercial wisdom,” which gives financial creditors priority when approving resolution plans and important choices during the Corporate Insolvency Resolution Process (CIRP), is fundamental to this framework. Indian courts have limited judicial intervention to procedural and statutory compliance, continuously upholding the superiority of CoC’s commercial wisdom. Concerns about openness, treating stakeholders fairly, and safeguarding operational creditors and additional susceptible parties have been brought up by this approach, nevertheless. By analyzing legislative purpose, judicial interpretations, and new issues, this essay critically investigates the extent and constraints of the business wisdom concept under the IBC. The study comes to the conclusion that balanced oversight is required to maintain fairness and the goals of the IBC, even while business wisdom is crucial for guaranteeing efficiency and economic reality.
Keywords: Insolvency and Bankruptcy Code, Committee of Creditors, Commercial Wisdom, CIRP, Judicial Review.
