Sandeep Lucky v RP Ritzy Chemicals CoC Wisdom Curtailed

In a significant recalibration of the “commercial wisdom” doctrine, the Appellate Tribunal affirms that CoC approval is not immune from judicial scrutiny where statutory mandates are breached. 

It endorses rejection of a resolution plan despite 100% CoC approval, citing failures in disclosure of avoidance transactions, improper structuring of recoveries, and lack of procedural transparency. 

The ruling underscores that CIRP must remain compliant, fair, and disclosure-driven, and that deviations, even if commercially endorsed, are fatal.