The Supreme Court on Wednesday said it would have to lay down some laws on what stage the adjudicating authority, appellate authority and the apex court could interfere in insolvency resolution proceedings.
A Bench of Justice Rohinton Fali Nariman and Justice Indu Malhotra made the remarks while hearing petitions filed by ArcelorMittal and NuMetal challenging each another’s eligibility to bid for debt-ridden Essar Steel Limited, against which a Corporate Insolvency Resolution Process was initiated last year.
“We have to lay down some laws here,” the Bench said adding, “Ultimately the idea of the court is this huge financial debt is recovered. If it is possible to salvage the workers, we will do so.”
‘Pay dues first’
During the hearing, senior advocate Mukul Rohatgi, for VTB-backed NuMetal, said ArcelorMittal was not qualified to bid on account of Uttam Galva. “If you are the promoters than you must pay the dues of the companies,” Mr. Rohatgi said.
