JOIN USSC 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.
Supreme Court allows the plea of Committee of Creditors of Essar Steel India and sets aside National Company Law Appellate Tribunal (NCLAT) order that provided for equal distribution of proceeds between financial and operational creditors. pic.twitter.com/evifUyqocW
— ANI (@ANI) November 15, 2019
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.
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