Which of the following statements regarding the Supreme Court's September 2025 judgment in the Bhushan Power and Steel Ltd (BPSL) insolvency case is/are correct?
1. The Supreme Court ruled that the Committee of Creditors (CoC) becomes 'functus officio' immediately after the NCLT approves the resolution plan.
2. The judgment reaffirmed the principle that the commercial wisdom of the CoC is supreme and cannot be lightly interfered with by judicial authorities.

Question

Accepted Answer

2 only — Statement 1 is incorrect because the Supreme Court explicitly clarified that the CoC does not become 'functus officio' post-approval but continues to exist until the plan is fully implemented and legal challenges conclude. Statement 2 is correct as the judgment strongly upheld the 'commercial wisdom' doctrine of the CoC.

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