The SC in Piramal Capital and Housing Finance Limited (Formerly Known As Dewan Housing Finance Corporation Limited) v. 63 Moons Technologies Limited & Ors.,1 held that the legislature has given paramount importance to the commercial wisdom of the committee of creditors (‘CoC') and thus, a clause in the resolution plan pertaining to the treatment of recoveries from avoidance applications filed under the Insolvency and Bankruptcy Code, 2016 (‘IBC') should not be interfered with. The SC further held that while supersession is permanent in nature, the effect of suspension is temporary. Accordingly, the directors who are superseded by the RBI prior to the commencement of insolvency, are deemed to have vacated their offices and cannot claim any right to attend the meetings of CoC or to participate in the corporate insolvency resolution process (‘CIRP').
Footnote
1. Piramal Capital & Housing Finance Ltd. v. 63 Moons Technologies Ltd., 2025 SCC OnLine SC 690.
Originally published 29 July 2025
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