Featured Case: Upholding the Sanctity of Commercial Wisdom in Corporate Insolvency

In a crucial development for corporate finance and legal professionals, the Supreme Court has unequivocally reinforced the primacy of the Committee of Creditors' (CoC) commercial wisdom in approving resolution plans under the Insolvency and Bankruptcy Code (IBC). This judgment serves as a vital directive against speculative litigation by unsuccessful bidders, safeguarding the efficiency and core objectives of the IBC framework. It clarifies that judicial intervention is confined to statutory compliance and procedural fairness, not a re-evaluation of commercial decisions, thus providing greater certainty for investors and distressed asset resolution.

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TORRENT POWER LTD. VS ASHISH ARJUNKUMAR RATHI & OTHERS, decided on 27-02-2026

Other Supreme Court Decisions You Might Find Interesting:

Finality of Supreme Court Orders and Remedies for Affected Non-Parties

This ruling clarifies the enduring power of Supreme Court judgments, even for non-parties. It underscores that higher courts cannot implicitly override previous specific Supreme Court directives affecting individuals. The Court also elucidated the limited avenues for non-parties to challenge judgments that impact their rights, emphasizing the public policy need for litigation finality and providing critical guidance for service law matters.

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DR. JIJI K.S. & ORS. VS SHIBU K & ORS. (with DR. BINDU KUMAR K VS DR. V. VENU IAS in connected matter), decided on 27-02-2026

Arbitrator's Power to Award Interest: Contractual Bars vs. Statutory Mandate

A crucial decision for contract law and arbitration practitioners, this judgment delineates an arbitrator's power to award interest. The Supreme Court emphasized that explicit contractual clauses prohibiting pre-award/pendente lite interest must be strictly observed. However, it clarified that post-award interest, a statutory mandate under the Arbitration Act, 1996, operates independently unless unequivocally barred by contract, reinforcing the distinction between pre- and post-award interest for all commercial agreements.

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UNION OF INDIA & ORS. VS LARSEN & TUBRO LIMITED (L&T), decided on 27-02-2026

'Change in Law' Compensation in Power Purchase Agreements Post-Coal Block Cancellation

This ruling provides significant clarity on 'Change in Law' clauses in Power Purchase Agreements, particularly concerning coal block cancellations. The Supreme Court affirmed that judicial decisions and subsequent legislation leading to the cancellation of captive coal blocks constitute a 'Change in Law' event, entitling affected parties to compensation. The judgment meticulously distinguishes this from indemnity clauses for shortfalls in alternative sourcing, offering crucial insights for the energy sector and infrastructure projects.

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West Bengal State Electricity Distribution Co. Ltd. VS Adhunik Power & Natural Resource Ltd. & Ors., decided on 27-02-2026

Determining Insurance Liability: Negligence, Road Safety, and Evidentiary Weight

In a practical judgment on motor accident claims, the Supreme Court re-emphasized the importance of direct evidence presented before the Motor Accident Claims Tribunal (MACT). It underscored that the trailing vehicle's driver bears the primary responsibility for maintaining a safe distance, applying specific road safety regulations to determine negligence and ultimately fix insurance liability. This provides vital clarification for insurance companies, legal practitioners, and fleet management professionals in assessing accident claims.

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Oriental Insurance Company Limited VS Tata AIG General Insurance Company Limited and Ors., decided on 24-02-2026