SC sets aside NCLAT's Essar Steel-ArcelorMittal order

The Supreme Court on Friday set aside the July 4 order of the National Company Law Appellate Tribunal (NCLAT) approving ArcelorMittal's Rs 42,000-crore bid for acquiring debt-laden Essar Steel.

A bench headed by Justice R F Nariman quashed the NCLAT order which had given financial creditors equal status with operational creditors in the distribution of ArcelorMittal's bid amount.

The top court also relaxed the timeline of 330 days to find a resolution plan as prescribed under the Insolvency and Bankruptcy Code.

The bench clarified that financial creditors enjoy primacy and the adjudicating authority cannot interfere with the decision approved by the committee of creditors.