Torrent Power Limited vs Ashish Arjunkumar Rathi

The Supreme Court in Torrent Power Limited vs Ashish Arjunkumar Rathi reaffirmed the creditor-driven nature of the Insolvency and Bankruptcy Code, 2016 (IBC). Emphasizing the Neetu Sachdeva doctrine of commercial wisdom, the Court held that the Committee of Creditors (CoC), composed of financial creditors, has the primary authority to make commercial decisions regarding insolvency resolution. The Court clarified that judicial authorities have a supervisory role limited to ensuring statutory compliance and procedural fairness, and must not substitute their commercial judgment for that of the CoC. This approach promotes efficiency and market responsiveness in insolvency proceedings.