In Chitra Sharma v Union of India AIR 2018 SC 1215, despite the CoC not approving any successful resolution the Supreme Court ordered restoration of CIRP. And the Supreme Court directed the CoC to re-invite bids from prospective resolution applicants. Restoration of CIRP wasn’t permitted under the IBC at that time. Why did the Supreme Court order restoration of CIRP despite the IBC not permitting it?
All the above factors influenced the Supreme Court’s decision to order restoration of CIRP. While the Supreme Court acknowledged that it should adhere to ‘discipline’ of the IBC while exercising its powers under Article 142 of the Constitution. However, it concluded that special circumstances of the case warranted restoration of the CIRP.