Essar Steel verdict: Strengthening committee of creditors comes with riders

Arguably, while taking two steps forward in cementing the autonomy of the CoC, the SC may have taken one step back by allowing NCLT to exercise vague and undefined power, which is highly subjective

The ArcelorMittal saga finally achieved quietus on November 15, 2019. Its resolution plan for rehabilitating Essar Steel was blessed by the apex court. While the judgment traverses a range of issues, the core question which it deals with is the extent to which the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) can interfere with a resolution plan, once it is approved by the committee of creditors (CoC).

In an earlier column, we had outlined how the amendments (Section 30 of the IBC) were a reaction to the NCLAT’s decision on July 4, 2019, in