I. NCLAT approves the resolution plan submitted by ArcelorMittal in the resolution proceedings in respect of Essar Steel India Limited while modifying the distribution of money to the financial and the operational creditors
National Company Law Appellate Tribunal (“NCLAT”) in case of Standard Chartered Bank v. Satish Kumar Gupta, R.P. of Essar Steel Limited and Others (decided on July 4, 2019), approved the resolution plan submitted by ArcelorMittal India Pvt. Ltd. (“ArcelorMittal”) in the resolution proceedings in respect of Essar Steel India Limited (“Corporate Debtor”) while modifying the distribution of money to the financial and the operational creditors.
In the corporate insolvency resolution process (“CIRP”) initiated against the Corporate Debtor, the committee of creditors (“COC”) approved the resolution plan submitted by ArcelorMittal. Thereafter, the National Company Law Tribunal, Ahmedabad (“NCLT”) approved the said resolution plan with certain modifications by its order dated March 8, 2019. A number of applications were preferred by the operational creditors and the financial creditors against the said order in relation to distribution of assets to different financial creditors and the operational creditors on the ground of discrimination or the modification of resolution plan as suggested by the NCLT. Mr. Prashant Ruia, promoter of the Corporate Debtor (“Promoter”) also challenged the order of the NCLT on the ground that the Resolution Applicant is ineligible in terms of Section 29A of the Insolvency and Bankruptcy Code, 2016 (“Code”). NCLAT clubbed the said applications/ appeals and the following issues came up for determination: