IBC Clarified: Supreme Court Says Value Maximisation Goes Beyond Numbers
By Communications Committee INSOL India. Posted On : April 24, 2026
The Supreme Court in a recent judgment in Torrent Power Limited v. Ashish Arjunkumar Rathi [(2026) ibclaw.in 109 SC] reiterated that under the IBC, the highest bid does not necessarily constitute the best resolution plan, emphasising that value maximisation is not purely a numerical exercise. The Court reaffirmed the primacy of the commercial wisdom of the Committee of Creditors (CoC), holding that decisions on viability, haircut, and feasibility lie within the creditors’ domain. It clarified that judicial authorities cannot substitute their own assessment for that of the CoC merely on the ground that a higher financial offer exists. The judgment highlights that factors such as feasibility, sustainability, and long-term revival of the corporate debtor are equally critical in evaluating resolution plans. The Court also noted that clarifications or modifications to a plan do not invalidate it, so long as its core financial structure remains intact. It cautioned against excessive litigation by unsuccessful bidders, observing that such challenges can delay resolution and undermine the objectives of the IBC. The judgment reinforces limited judicial review under Section 61, ensuring that insolvency remains a creditor-driven, time-bound process.