The National Company Law Appellate Tribunal (NCLAT) on Tuesday observed that the Committee of Creditors of Essar Steel cannot discriminate between operational creditors of the debt-ridden firm. The CoC of Essar Steel has divided operational creditors of the company into two types — one with claims under Rs 1 crore and another above Rs 1 crore.
During the proceedings, the NCLAT bench headed by Chairman Justice S J Mukhopadhaya said that the operational creditors cannot not be treated differentially. “We have said that you cannot discriminate among the same set of creditors. You can not discriminate among operational creditors on the basis of their dues,” the NCLAT said.
According to the resolution plan of ArcelorMittal approved by CoC on October 24, 2018, operational creditors having claims below Rs 1 crore will get their dues and those with claims of over Rs 1 crore will receive almost zero. Read More