JSW Steel is among the few corporates to have an interesting tryst with IBC. After giving up attempts to takeover Bhushan Steel, it succeeded in acquiring the much-smaller asset Monnet Ispat, and remains the front-runner in Bhushan Power and Steel bidding. A choosy JSW Steel made the mistake of not placing expression of interest for Essar Steel as it thought its plate was full and the steel company’s last ditch attempts to enter the fray failed. Seshagiri Rao, Joint Managing Director, JSW Steel, spoke to BusinessLine on IBC. Excerpts:
How do you rate the progress of the Insolvency and Bankruptcy Code in 2018?
All the procedural issues, I think, are getting resolved. It is now clear that IBC is for maximisation of distressed asset value and balancing the interest of all stakeholders and not just that of financial creditors. These two things are clear from the judgments that have come recently. Now, the major question that is being debated is whether Section 29A is Constitutional or not. The Supreme Court judgment in one or two cases that is being heard will bring in the much-needed clarity on Section 29A. With this the IBC process will get expediated.
There seems to be lot of delay in banks’ effort to recover money?
In the case of Binani Cement, the court has made it clear that the entire process is time-bound. Committee of Creditors and resolution professionals cannot take their own sweet time. More or less the principles are laid, excepting for bigger issues. In my view, things will fall in place with the Supreme Court guidance on these.
What happens to the assets that have already being sold, if the Supreme Court judgment rules that Section 29A is unconstitutional?
Laughs. It is a hypothetical question. Even what you say comes true, I am sure that the court ruling will be implemented prospectively rather than retrospectively. I do not think the right can be taken away from buyers of an asset that had been auctioned and won by the bidder. Though I am not a legal person to comment, I do not think it can be implemented with retrospective effect.