ARTICLE
12 February 2020

ELP Banking & Finance Update: Essar Steel – Arcelor Mittal Supreme Court Judgement

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Economic Laws Practice

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Role of the Resolution Professional and the CoC that is constituted under the IBC.
India Finance and Banking

A landmark judgement was passed by the Hon'ble Supreme Court on November 15, 2019, in the matter of Committee of Creditors of Essar Steel India Limited (Appellant) vs. Satish Kumar Gupta & Ors (Respondents).

Please find attached an analysis of the judgement dealing with important issues including:
(i) Role of the Resolution Professional and the CoC that is constituted under the IBC
(ii) Jurisdiction of the National Company Law Tribunal and the National Company Law Appellate Tribunal, qua resolution plans that have been approved by the Committee of Creditors
(iii) Treatment of secured and unsecured creditors- The equality principle
(iv) Extinguishment of rights of creditors against guarantors
(v) Undecided claims
(vi) Constitutional validity of Sections 4 and 6 of the Insolvency and Bankruptcy Code (Amendment) Act, 2019/CIRP time period of 330 days
(vii) Constitution of the Sub-Committee
(viii) CoC does not act as a fiduciary

We trust you will find this helpful. Our team has endeavored to simplify and cut through the complex legal language to put forth these issues in a reader friendly format.

Read the detailed article here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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