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The Supreme Court has posted the next hearing in the Essar Steel insolvency case to August 19 due to the fresh amendments made in the Insolvency and Bankruptcy Code (IBC).
On July 22, the Apex Court ordered a ‘status quo’ on NCLAT’s ruling in the Essar Steel insolvency case following a petition filed by the Committee of Creditors.
A division bench consisting of Justices Rohinton Fali Nariman and Surya Kant on Wednesday heard the submissions made by the operational creditors and their intention to challenge the recent amendments in the IBC. Following this, the bench ordered them to file the writ challenging the amendment within a week and the same to be listed on August 19. It also asked the Attorney General to appear on the hearing day to throw light on the impact of the IBC amendment in Essar Steel case.
On July 4, NCLAT through its judgment had clubbed all types of creditors together and changed the way proceeds from the sale of assets should be distributed. The ruling had upset the secured financial creditors as their share of debt recovery would go down to ₹30,030 crore against their approved claim of ₹49,473 crore.
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