2026 INSC 206 REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NOS.11746-11747 OF 2024 TORRENT POWER LTD. …APPELLANT VERSUS ASHISH ARJUNKUMAR RATHI & OTHERS …RESPONDENTS WITH CIVIL APPEAL NOS.11689-11690 OF 2024 CIVIL APPEAL NOS.12994-12995 OF 2024

J U D G M E N T

NAGARATHNA, J.

Preface:

The Insolvency and Bankruptcy Code, 2016 (for short, “IBC”)

marks a fundamental shift in India’s insolvency regime: from a court-centric model to a creditor-driven process. At its core lies the Signature Not Verified doctrine of commercial wisdom: a conscious legislative choice to Digitally signed by NEETU SACHDEVA Date: 2026.02.27

17:00:50 IST Reason:

vest decisive authority in the Committee of Creditors (for short, “CoC”), comprising financial creditors who bear the economic consequences of failure.

1.1 The IBC recognises that decisions on viability, valuation, and acceptable haircuts are inherently commercial, not judicial. Courts, therefore, do not substitute their assessment for that of the CoC. The adjudicating authority performs a supervisory role, ensuring statutory compliance and procedural fairness but refrains from second-guessing economic bodies, in this case, the CoC.

1.2 The doctrine of commercial wisdom thus embodies both institutional discipline and legislative intent: insolvency resolution must be efficient, market-responsive and guided by those best placed to evaluate commercial risk.

1.3 With this preface, we now proceed to examine the facts and issues arising in the present civil appeals.

Introduction:

2. The unsuccessful resolution applicants being aggrieved by the dismissal of their appeals by the National Company Law Appellate Tribunal, Principal Bench, New Delhi (for short, “NCLAT”), are before this Court by filing the present civil appeals under Section 62 of the IBC.

2.1 By the impugned order dated 01.10.2024 in Company Appeal (AT) (Ins) Nos.1621-1622 of 2024, the NCLAT has affirmed the order dated 13.08.2024 in CP (IB) No.893 (MB) of 2021 passed by the National Company Law Tribunal, Mumbai Bench-IV (for short, “NCLT”) which allowed IA No.2794 of 2023 filed by Mr. Ashish Arjunkumar Rathi, Resolution Professional (for short, “RP”) of SKS Power Generation (Chhattisgarh) Limited (“Corporate Debtor”) for approval of the Resolution Plan submitted by Sarda Energy and Minerals Limited (for sake of convenience, “SEML”). By the same order, the applications filed by the appellants herein – Torrent Power Limited (for short, “Torrent”) being IA No.3399 of 2023, Vantage Point Asset Management Pte. Ltd. (for short, “Vantage”) being IA No.3336 of 2023, and Jindal Power Limited (for short, “Jindal”) being Intervention Petition No.40 of 2024 also came to be rejected by the NCLT.

2.2 By way of this common order, we are disposing of Civil Appeal Nos.11746-47 of 2024, 11689-90 of 2024, and 12994-95 of 2024 preferred by the appellants - Torrent, Vantage, and Jindal respectively. Brief Facts:

3. SKS Power Generation (Chhattisgarh) Ltd. is the Corporate Debtor against whom an application was filed by Bank of Baroda under Section 7 of the IBC seeking initiation of Corporate Insolvency Resolution Process (for short, “CIRP”). The same was admitted by order dated 29.04.2022 passed by the NCLT in Company Petition (IB) No. 893 of 2021. Respondent No.1 was appointed as the Interim Resolution Professional (for short, “IRP”) and he came to be confirmed as the RP by the CoC and subsequently by the NCLT.

3.1 On 17.07.2022, the RP issued Form-G inviting Expressions of Interest (for short, “EoIs”) from prospective resolution applicants. On receipt of the EoIs, the RP issued a Request for Resolution Plan (for short, “RFRP”), Information Memorandum, and provided access to the Virtual Data Room of the Corporate Debtor to all prospective resolution applicants on 12.08.2022. After granting several extensions, the final date for submission of Resolution Plans was decided as 30.12.2022. Pursuant thereto, SEML and six other applicants in