Juris Corp successfully represented JM Financial Asset Reconstruction Company Ltd. [as the 100% Committee of Creditors (CoC) of Raigarh Champa Rail Infrastructure Private Limited (Corporate Debtor)] before the National Company Law Appellate Tribunal, Chennai (NCLAT). The firm secured a favourable order for the CoC to invite fresh Expressions of Interest (EOI) for value maximisation of the Corporate Debtor, even after submission of the resolution plan.

While the CoC initially approved a resolution plan, after it was filed before the National Company Law Tribunal, Hyderabad (NCLT), the CoC withdrew the plan and opted to proceed with a challenge mechanism between the existing Prospective Resolution Applicants (PRAs).

Thereafter, exercising its commercial wisdom, the CoC decided to initiate a fresh bidding process to invite new applicants, aiming to maximize value for the Corporate Debtor instead of proceeding with the challenge mechanism. However, contrary to the CoC’s decision, the NCLT rejected the request to initiate a fresh bidding process and directed the CoC to proceed with the challenge mechanism.

The NCLAT decided in favour of the CoC while examining whether the CoC, in its commercial wisdom, could invite fresh EOIs and reopen the process to the public at large after a resolution plan had already been received and the process had reached the challenge mechanism stage, in order to achieve value maximisation for the Corporate Debtor. The matter is of utmost importance as it provides a judgment in relation to the ever-evolving jurisprudence on the commercial wisdom of the CoC.

Principal Associate Palak Nenwani and Associate Ronit Chopra appeared in behalf of the firm.