Why Essar Steel Insolvency Case Is Back In Supreme Court, Mocking Hope of Swift Resolution

More than two years back, the Reserve Bank of India (RBI) named Essar Steel as one of 12 companies whose non-performing assets (NPA) were clogging up the banking system, The Print reported. In its 13 June 2017 order, the central bank had also asked the lenders to initiate proceedings against these companies under the Insolvency and Bankruptcy Code (IBC) at the National Company Law Tribunal (NCLT). Accordingly, the NCLT bench in Ahmedabad started hearing insolvency proceedings against Essar Steel the same month. Ever since, the case has shuttled between NCLT, Gujarat High Court, National Company Law Appellate Tribunal (NCLAT) and the Supreme Court. The legal wrangles, counter offers and changing rules have stretched the case despite a 270-day deadline, which was later extended by 60 more days, frustrating one of the major purposes of the IBC — to implement a swift insolvency resolution process. Read more