An operational creditor of Essar Steel has moved the Supreme Court against the National Company Law Appellate Tribunal’s orders asking the Ahmedabad bench of the National Company Law Tribunal to decide on the resolution plan for the company on or before February 11. The matter is likely to be mentioned for urgent hearing before a bench led by Chief Justice Ranjan Gogoi on Thursday.
Kamlaljeet Singh Ahluwalia, an operational creditor, has sought setting aside of the NCLAT’s January 23 and February orders on the grounds that the orders are contrary to the settled legal propositions and against the principles of natural justice. According to him, the NCLAT has erred in concluding that only one representative of the operational creditor is required to be heard and this is contrary and beyond its scope of jurisdiction, thus unsustainable in law.
“The appellate authority, while exercising powers under Section 61 of the Insolvency and Bankruptcy Code, 2016 cannot assume supervisory jurisdiction over the adjudicating authorities and issue directions dictating the procedure to conduct the hearing of applications before the adjudicating authority,” Ahluwalia said.
He further said that the appellate tribunal cannot pass orders, which would be otherwise prejudicial to the person or entity without hearing or affording a hearing to them. 92% of lenders of Essar Steel had voted in favour of ArcelorMittal’s resolution plan on October 25.
Source: February 7, 2019, Financial Express