SC order on Essar Steel to bring certainty to resolution process in line with global practices: Ficci

The Supreme Court's judgement in the Essar Steel case would bring certainty to the resolution process in India at par with the global practices, industry body Ficci said on Saturday.

The Supreme Court on Friday set aside an NCLAT order which gave equal rights to the secured and unsecured creditors during the insolvency proceedings of debt-ridden Essar Steel, clearing the decks for its takeover by Lakshmi Mittal-led ArcelorMittal.

"At a time when there is high level of interest among foreign investors, the judgment would bring certainty to resolution process, in line with global practices and help India retain its status of preferred investment destination, Ficci President Sandip Somany said in a statement.

Upholding of the doctrine that financial creditors will rank ahead of operational creditors bodes well for the Indian banking industry as well as potential foreign investors, he added.

The industry body also welcomed the court order that the commercial decisions of the Committee of Creditors (CoC) will not be open to judicial review.