 "Illustration: Ajay Mohanty")
All hell broke loose in India’s legal and banking circles after the National Corporate Law Appellate Tribunal’s (NCLAT’s) decision in the Essar Steel case on July 4 this year. The 116-page judgment, written by Justice Sudhansu Mukhopadhyay, chief of the NCLAT, has turned the fundamental tenets of bankruptcy restructuring upside down.
The commentariat’s views have been universally negative. One headline screamed “NCLAT’s Essar Steel ruling negates the rights of secured creditors, makes mockery of the IBC [Insolvency and Bankruptcy Code]”. Another wrote of “The Possible Perils of NCLAT’s Verdict”. Yet another cried “NCLAT gets it totally wrong on Essar Steel”. Rajnish
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