“ROLE OF COMMITTEE OF CREDITORS (COC): COMMERCIAL WISDOM VS JUDICIAL REVIEW”

AUTHOR – NITI NANCY, L.L.M. STUDENT, CHANAKYA NATIONAL LAW UNIVERSITY, PATNA

BEST CITATION – NITI NANCY, “ROLE OF COMMITTEE OF CREDITORS (COC): COMMERCIAL WISDOM VS JUDICIAL REVIEW”, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (6) OF 2026, PG. 376-381, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

The Committee of Creditors (CoC) is established as the key decision-making authority in the Corporate Insolvency Resolution Process (CIRP) in the Insolvency and Bankruptcy Code, 2016 (IBC). The commercial wisdom doctrine gives the CoC broad powers to accept or to refuse a resolution plan, restricting judicial review of such matters by establishing authorities like National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT). Nonetheless, it becomes problematic when such freedom interferes with values of fairness, transparency, and protection of stakeholders. Although courts give deference to the commercial judgments of the CoC, it has in some cases intervened to make sure that its commercial judgments do not override the statutory requirements and to avoid arbitrariness. The paper discusses how the jurisprudence on the balance between CoC commercial wisdom and the limits of the judicial review has been shifting by considering the landmark cases and their consequences within the resolution of insolvency. It claims that there ought to be the balanced approach to ensure both efficiency and accountability in the IBC framework.