NEW DELHI: The Supreme Court today gave the Centre two weeks to file a reply on challenges to Insolvency and Bankruptcy Code (Amendment) Bill 2019. The apex court was hearing the Essar Steel insolvency case.
Some operational creditors of Essar Steel and former promoters Ruia family are challenging the recent amendment to insolvency code.
A bench headed by Justice Rohinton Nariman said the case will be heard after three weeks and once the hearing starts, no more adjournments will be granted.
The Insolvency and Bankruptcy Code (Amendment) Bill 2019 gives banks power to decide how the bid amount in a resolution plan will be distributed as well as power to decide which resolution plan will be approved.
This amendment in effect neutralises the National Company Law Appellate Tribunal's judgement in the Essar Steel case, which struck parity between banks and operational creditors.
ArcelorMittal India's bid worth 420 bln rupees has been accepted by both the National Company Law Tribunal and the National Company Law Appellate Tribunal.
Appearing for the company, Harish Salve said his client has been waiting for months now after having committed 420 bln rupees. The case has been on for more than 700 days now.
As a result of the appellate tribunal order, share of banks came down drastically from around 92% of the total claim, as was approved by the company law tribunal, to around 60%.