If in an insolvency process the CoC consists of a large no. of financial creditors, can the CoC form sub-committees to undertake different tasks?
In CoC of Essar Steel India Ltd v Satish Kumar Gupta & Ors 2019 INSC 1184, the Supreme Court held that the CoC can form sub-committees to negotiate with the resolution applicants, perform administrative or ministerial acts if they are ratified by the CoC subsequently. However, questions that have a vital bearing on the running of the corporate debtor cannot be delegated to any other person.