SC orders interim stay on NCLAT order on Orchid Pharma resolution process

SBI filed the appeal with the Supreme Court to set aside the NCLAT order alleging that the appellate tribunal erred in overriding the commercial wisdom of the CoC

The Supreme Court has ordered an interim stay on the National Company Law Appellate Tribunal’s (NCLAT’s) ruling on the resolution of debt-ridden Orchid Pharma.

The NCLAT in November set aside the National Company Law Tribunal’s (NCLT’s) approval of a resolution plan by Gurgaon-based Dhanuka Laboratories for Orchid and remitted the matter to the NCLT, observing that it quoted an amount below the liquidation value and could not be approved.

State Bank of India, which is an important member in the Committee of Creditors (CoC), filed the appeal with the Supreme Court to set aside the NCLAT order, alleging that the appellate tribunal