The Supreme Court on Friday set aside NCLAT’s ruling that provided for equal distribution between financial and operational creditors in the Essar Steel case.
The apex court relaxed a timeline of 330 days to find a resolution of stressed asset as prescribed in IBC.
The court said, “Open to NCLAT to extend the timeline if required.”
While pronouncing the order, the court said appeals of Committee of Creditors (CoC) will be allowed and the resolution plan of Arcelor Mittal as amended by CoC must be accepted for Corporate Insolvency Resolution Process (CIRP).