SC: Approval of RP not to be interfered with if CoC considered all factors

The Hon’ble Supreme Court, on 4th September 2020, in the matter of The Karad Urban Cooperative Bank Ltd. v. Swwapnil Bhingardevay & Ors. held that if all the factors that need to be taken into account for determining whether or not the corporate debtor can be kept running as a going concern have been placed before the Committee of Creditors and the CoC has taken a conscious decision to approve the resolution plan, then the adjudicating authority will have to switch over to the hands off mode.

The Hon’ble Supreme Court observed that:

If all the factors that need to be taken into account for determining whether or not the corporate debtor can be kept running as a going concern have been placed before the Committee of Creditors and the CoC has taken a conscious decision to approve the resolution plan, then the adjudicating authority will have to switch over to the hands off mode. (Para 13)

The question of breach of confidentiality and leakage of confidential information can easily be tested on the touchstone of the benefit that accrued to the party who got the information. (Para 38)

Copy of judgment: Judgement_04-Sep-2020

-Adv. Tushar Kaushik

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