The observations and conclusions in the Essar Steel Ltd. and Bhushan Power & Steel Ltd. insolvency cases are likely to impact the insolvency process considerably.
The Delhi and Ahmedabad benches of the National Company Law Tribunal have pointed out lapses in the process carried out by the resolution professionals and the committee of creditors. On those grounds, the NCLT allowed Numetal and ArcelorMittal’s bid to be considered for Essar Steel and Liberty House’s bid for Bhushan Power.
So how will these conclusions impact ongoing and future insolvency cases and are they likely to create chaos? To answer that, we spoke to Anand Desai, Managing Partner at DSK Legal and Sanjay Jain, Executive Director, at Capri Global and former COO with ARCIL.