Evolving Landscape of Commercial Wisdom: Analysing Judicial Interpretations in IBC Cases
The evolving commercial wisdom within the context of the Insolvency and Bankruptcy Code (IBC) has been the subject of much attention. This article examines judicial interpretations surrounding the Committee of Creditors (CoC) and their exercise of commercial wisdom during insolvency proceedings. Analyzing key legal precedents, we explore the delicate balance between creditor interests, business viability, and judicial review. The recent Supreme Court ruling in MK Rajagopalan v Dr Periasamy Palani Gounder has implications for the CoC's decision-making authority. We also recommend the implementation of a Code of Conduct to govern CoC actions. The concept of commercial wisdom must be scrutinized prudently to strike the right balance between liquidation and reorganization .
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