IBC: Commercial or business decision taken by the Liquidator for conducting the sale of the assets of the Corporate Debtor are not subject to judicial review

It is not for the court to question the judiciousness of the decision taken by the Liquidator with the idea of enhancing the value of the assets of the Corporate Debtor being put up for sale. The right to refuse the highest bid or completely abandon or cancel the bidding process was available to the Liquidator unless it is shown that process was a malafide exercise

Category: Insolvency and Bankruptcy Code 2016   Posted on: September 11, 2022

Scope of judicial review of administrative decisions

In essence, the test is to see whether there is any infirmity in the decision-making process and not in the decision itself. The court has to find out if the administrator has left out relevant factors or taken into account irrelevant factors. The decision of the administrator must have been within the four corners of the law, and not one which no sensible person could have reasonably arrived at, having regard to the above principles, and must have been a bona fide one. The decision could be one of many choices open to the authority but it was for that authority to decide upon the choice and not for the court to substitute its view

Category: Jurisprudence   Posted on: September 7, 2022