SC advises NCLT against routine asset revaluation

The Supreme Court has urged the National Company Law Tribunal (NCLT) not to routinely issue directions for a revaluation of the assets of a corporate debtor, underlining that the tribunal only has limited powers to issue such directions under exceptional circumstances.

- Utkarsh Anand

A bench of justices Vikram Nath and Ahsanuddin Amanullah added that NCLT ought to remain cognisant that any order of revaluation would impede the course of quick resolution, and therefore, such orders could be passed only when there are cogent reasons to justify embarking on the extraordinary course.

"It is now well settled that it is well within the CoC's (committee of creditors) domain as to how to deal with the entire debt of the corporate this background, debtor. In if after repeated negotiations, a resolution plan (RP) is submitted, and has been approved by the CoC with a majority vote, such commercial wisdom was not required to be called into question or casually interfered with," held the court in its judgment on Tuesday.