SC allows banks to go ahead with Siva Industries settlement offer

Says tribunals can't interfere with banks' commercial wisdom; promoter's offer of Rs 328 cr was okayed by CoC

The Supreme Court on Friday allowed banks to proceed with an offer of settlement submitted by the promoter of Siva Industries under Section 12A of the Insolvency and Bankruptcy Code (IBC), which allows such a provision if 90 per cent of the committee of creditors (CoC) agree to it.

The Supreme Court reiterated it had made it clear earlier that Section 12A passed constitutional muster, and it had held the commercial wisdom of the CoC should not face judicial intervention.

“It has been held that there is an intrinsic assumption that financial creditors are fully informed about the viability of