Letter to BS: NCLT decision a relief for operational creditors of Essar

The likelihood of National Company Law Tribunal rejecting or changing ArcelorMittal’s resolution plan for Essar Steel comes as a welcome relief for the operational creditors. Their grievance about playing second fiddle to the financial creditors is well justified. For instance, the mere existence of a dispute precludes them from applying for debt resolution. Recent judgments have held that even routine correspondence such as complaints on quality are valid disputes. The dispute need not be in the form of a civil suit or arbitration proceeding. The domination of lenders in the committee of creditors was bound to result in situations such