SC warns against 'strategic litigation' by losing IBC bidders, upholds Sarda Energy plan

• Supreme Court warns against "strategic litigation" by unsuccessful bidders under IBC, calling it an attempt for a "second shot" at stressed assets.
• Court stated that delays and expansive judicial scrutiny of CoC decisions destroy value, lengthen timelines, and raise transaction costs.
• Cautioned NCLT and NCLAT against wide judicial review, emphasizing the primacy of CoC's commercial wisdom.
• Reiterated that IBC confines judicial review to strict statutory compliance, leaving no scope for courts to intervene in CoC's commercial decisions.
• Observations came while upholding Sarda Energy and Minerals Ltd.'s ₹1,950-crore resolution plan for SKS Power, dismissing challenges from Torrent Power, Jindal Power, and Vantage Point Asset Management.