LIJDLR

Resolution Plan

ESSAR STEEL LEGACY: JUDICIAL ENFORCEMENT OF COMMERCIAL WISDOM IN PLAN APPROVALS AMID 2026 AMENDMENTS

Volume IV Issue I /

ESSAR STEEL LEGACY: JUDICIAL ENFORCEMENT OF COMMERCIAL WISDOM IN PLAN APPROVALS AMID 2026 AMENDMENTS Omkar Ashok Galatagekar, 2nd Semester Corporate Law, IT and Data Protection, Alliance University, Bangalore (India) Download Manuscript doi.org/10.70183/lijdlr.2026.v04.98 This paper discusses the development and application of the doctrine of commercial wisdom within Insolvency and Bankruptcy Code, 2016 (IBC) with reference to a landmark case in Committee of Creditors of Essar Steel India Limited (through Authorised Signatory) v Satish Kumar Gupta & Ors, (2020) 8 SCC 531 and cases that have happened thereafter, including 2026 changes. The research is now placed in the wider context of the historical changes in the insolvency regime within India which has changed into a resourceful, disaggregated, debtor-centric system, to a coherent, creditor-centric system that ensures value enhancement and a time-limited resolution. The main question this paper will analyse is the scope used by judicial authorities to interfere with the commercial decision making of the Committee of Creditors (CoC) when approving resolution plans. The proposed case will examine the legal framework on insolvency resolution, appraise the interpretation of commercial wisdom as applied by courts, and determine the effects of the recent legislative changes on the equilibrium between the freedom of creditors and protection of stakeholders. The approach taken is a doctrinal one, which is based on statutory measures, landmark judicial precedents, and secondary legal material. The most important provisions of the IBC such as Sections 7, 12, 30, and 31 are discussed with major case laws in order to comprehend the developing jurisprudence. Practical implications of the 2026 amendments in promoting transparency, accountability, and efficiency in the procedures are also taken into account in the study. As per the findings, the Essar Steel ruling has clearly cemented the primacy of the CoC commercial wisdom and placed a strong restriction of the judicial interference to legal compliance and the procedural irregularity issues. This has increased efficiency, minimized delays and increased investor confidence. The paper concludes by saying that although the doctrine of commercial wisdom is a requirement of an efficient insolvency regime, it has to be counterbalanced with sufficient safeguards to guarantee fairness and transparency. The amendments of 2026 are a positive move in this direction, and they seek to make accountability institutional, without compromising creditor autonomy.

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HAIRCUT ECONOMICS: HOW THE IBC BECAME BACKDOOR BAILOUT TOOLS FOR NBFCS

Volume III Issue III /

HAIRCUT ECONOMICS: HOW THE IBC BECAME BACKDOOR BAILOUT TOOLS FOR NBFCS Devesh Jha, Author is a 4th year B.COM LLB (Hons.) student at Institute of Law, Nirma University (India) Priyanshi Jain, Author is a 4th year B.A. LLB (Hons.) student at Institute of Law, Nirma University (India). Download Manuscript doi.org/10.70183/lijdlr.2025.v03.91 The IBC was made to create creditor discipline and lead to value-maximizing resolutions within a time-bound period. But a new trend with discomfiting implications is emerging: non-banking financial companies (NBFCs) are now using the IBC not for recovering value, but for abandoning their own toxic lending exposures, however, at prices that are very low and with little accountability. NBFCs that have lent irresponsibly or without security have provoked CIRPs, have gotten rid of 80-90% bad assets, and have always gone on like this. The most worrisome is who pays for this, state-owned banks, public sector ARCs, and government-affiliated entities are frequent resolution applicants thus, they come to possess these assets through court-approved resolution plans. This article should suggest that the IBC is, unwittingly, a back door fiscal tool: where the costs of shoddy credit underwriting are socialized; where the NBFCs get to start afresh with no difficult questions asked regardless of how poor the quality of credit disbursement. Relying on case studies, regulatory analysis and comparative global architecture, the piece asks how this cycle of private risk and public loss is playing out and what reforms are required to forestall the IBC from allowing unregulated bailouts in camouflage.

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A WAY TO RESOLVE THE CORPORATE INSOLVENCY UNDER THE IBC

Volume III Issue II /

A WAY TO RESOLVE THE CORPORATE INSOLVENCY UNDER THE IBC Akash Kumar, CIRP, Moratorium, Insolvency Resolution Professional, Committee of Creditors, Resolution Plan, Adjudicating Authority. Download Manuscript doi.org/10.70183/lijdlr.2025.v03.52 The IBC represents a major overhaul, unifying and revising laws related to corporate, partnership, and individual insolvency and restructuring under a defined timeline. The Corporate Insolvency Resolution Process (CIRP), introduced under the Insolvency and Bankruptcy Code (IBC) of 2016, is designed to assist financially troubled companies by promoting both equitable distribution of assets and potential business revival. This study explores the CIRP framework as outlined in the IBC, detailing its key provisions, procedures, and the eligibility criteria for stakeholders involved in the resolution process. The paper also delves into judicial interpretations of the CIRP, assessing its strengths and limitations. Furthermore, it evaluates the extent to which the CIRP meets its intended goals. The article offers insights into the CIRP’s role within India’s insolvency ecosystem and concludes with recommendations for reform.

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THE ROLE OF COMMITTEE OF CREDITORS (COC) IN SHAPING RESOLUTIONS

Volume III Issue I /

THE ROLE OF COMMITTEE OF CREDITORS (COC) IN SHAPING RESOLUTIONS Nikhil Rawat, LL.M. (Corporate Banking & Insurance), Amity Law School, Noida (U.P.) Dr Amit Dhall, Assistant Professor, Amity Law School, Noida Download Manuscript doi.org/10.70183/lijdlr.2024.v03.32 The advent of the Insolvency and Bankruptcy Code, 2016 (IBC) in India marked a seminal shift in how financial distress is addressed. At the heart of this reform lies the Committee of Creditors (CoC), a body tasked with steering the Corporate Insolvency Resolution Process (CIRP). This paper critically examines the role of the CoC in shaping corporate resolutions, balancing creditor rights with debtor protections, and influencing the efficiency and outcomes of the insolvency process. Through an analysis of statutory frameworks, landmark judicial decisions, and practical implications, the paper reveals the evolving jurisprudence and real-world dynamics surrounding the CoC’s decision-making authority. It argues for a more nuanced understanding of commercial wisdom, transparency, and accountability, especially in light of the increasing scrutiny by courts and stakeholders. Type Information Research Paper LawFoyer International Journal of Doctrinal Legal Research, Volume III, Issue I, Page 787-806. Creative Commons Copyright This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. © Authors, 2024

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