IBC: Amendment debarring defaulting promoters may be challenged in court

The insolvency and bankruptcy process is entering the decisive phase where some big-ticket stressed assets are up for grabs. However, the recent amendment to the Insolvency and Bankruptcy Code with the introduction of Section 29A that debars defaulting promoters from participating in the bidding process has put many stakeholders on shaky ground. 

For instance, the bids of Numetal, a company having VTB Group as a majority shareholder and the Ruias as a minority partner, and ArcelorMittal for Essar Steel are hanging fire more than two weeks after submission. The resolution professional has assured stakeholders the proposals are being evaluated; the financial