Govt likely to oppose NCLAT's Essar Steel order in Supreme Court

The order, government said, is not in line with the Insolvency and Bankruptcy Code

The Ministry of Corporate Affairs (MCA) is likely to implead in the Supreme Court (SC) against the recent National Company Law Appellate Tribunal (NCLAT) judgment in the Essar Steel case treating secured lenders and operational creditors on a par, said a senior government official.

The order, the government said, is not in line with the Insolvency and Bankruptcy Code (IBC). “We will clarify the intent of the law in the apex court. The latest order is deviating from the Code,” said a senior official.

Lenders to Essar Steel have appealed against the NCLAT order in the SC, which will be heard next