Supreme Court Reinforces Finality of SLP Orders; Upholds CoC’s Commercial Wisdom Under IBC
By INSOL India Communications Committee Posted On : April 24, 2026
The Supreme Court in M/s Lamba Exports Pvt. Ltd. v. M/s Dhir Global Industries Pvt. Ltd. has reaffirmed the finality of judicial orders and the primacy of the commercial wisdom of the Committee of Creditors (CoC) under the IBC. The case arose from a Miscellaneous Application seeking recall of an earlier order dismissing an SLP on the basis of subsequent developments, including a One-Time Settlement and withdrawal of CIRP under Section 12A. The Court dismissed the application, holding that once an SLP is disposed of, it becomes functus officio and cannot reopen the matter except in limited circumstances. It clarified that a Miscellaneous Application cannot be used to re-agitate issues or introduce subsequent events. Reinforcing IBC principles, the Court held that decisions of the CoC, including withdrawal under Section 12A, fall within their commercial wisdom and are non-justiciable. It further emphasised that dismissal of an SLP, though not attracting merger, still attains finality. Overall, the judgment strengthens procedural finality and preserves the creditor-driven framework of the IBC.