Post-Bid Clarifications Do Not Justify Reopening a CoC-Approved Resolution Plan Absent Statutory Breach

The Background

The dispute arose from the corporate insolvency resolution process of SKS Power Generation (Chhattisgarh) Ltd. After the Committee of Creditors approved the resolution plan of Sarda Energy and Minerals Limited, unsuccessful resolution applicants argued that the approved bidder had impermissibly improved its offer through later communications described as clarifications.

Why the Supreme Court Intervened

The Supreme Court examined the process note, the email seeking clarifications, and the limits of judicial review under the IBC. It held that the later communications did not amount to the sort of impermissible commercial rewriting alleged by the appellants, and in any event courts are not free to substitute their own commercial assessment for that of the Committee of Creditors where the statutory requirements of the Code have been observed.

The Final Decision

The Court affirmed the NCLAT's judgment and dismissed the appeals. It refused to interfere with the approval of the successful resolution plan and reiterated that insolvency law depends on predictability, finality, and respect for the CoC's commercial wisdom.

Why This Judgment Matters

The judgment is significant for insolvency practice because it resists attempts by losing bidders to turn plan approval into a broad merits appeal. It reinforces that judicial review under the IBC is narrow, time-sensitive, and focused on statutory compliance rather than comparative commercial evaluation.