Analysts said most banks have provided significantly for their exposures to Essar Steel and given the recovery rate of around 90%, there should be significant writebacks. The case had landed up at the Supreme Court because the appellate tribunal of the bankruptcy court had held that the funds from the sale of a bankrupt company should be equally distributed between both financial creditors i.e. banks and operational creditors (suppliers, vendors etc.) who are owed money by the insolvent company.
Shares of public sector banks (PSBs) inched higher at the bourses on Friday, with the Nifty PSU Bank index gaining more than 3 per cent after the Supreme Court said the NCLAT can not interfere with the commercial decisions taken by banks in Essar Steel case. Although the law provides for resolution in a maximum 270 days, a series of cases in various forums resulted in the entire resolution process stretching to almost 28 months. Under IBC, it is the Committee of Creditors that is tasked with taking major decisions along with the resolution professional once proceedings have been initiated by National Company Law Tribunal. "The impugned NCLAT judgment is set aside", the top court said.
The Insolvency and Bankruptcy Code (Amendment) Bill 2019 gives CoC of the loan defaulting company explicit authority over the distribution of proceeds in the resolution process and fixes a firm timeline of 330 days for resolving cases referred to the IBC. There was setback for the government too as the court struck down the provision under IBC making it "mandatory" to complete the insolvency proceedings within 330 days. "This much-awaited judgment also settles to rest numerous points of law under IBC, which were tested in various courts".
A bench headed by Justice R F Nariman clarified that financial creditors enjoy primacy over operational creditors and the adjudicating authority can not interfere with the decision approved by the committee of creditors.
Clashes in Paris on 'Gilet Jaune' protests anniversary
Three-quarters of French people surveyed by pollsters Odoxa in October said they thought the movement was not yet over. In many ways it is hard to believe that France's gilets jaunes, or yellow vest, movement is only a year old .
"If NCLT finds that legal parameters are not met, it can send it back to Committee of Creditors, but it cannot tinker with the plan", reports said.
Essar Steel is reeling under a debt pile of Rs. 30,030 crore from financial creditors and Rs. 11,969 crore from operational creditors.
There is no principal of equality between secured and unsecured creditors, said the bench, also comprising Justices Surya Kant and V Ramasubramanian. "The order restores the contours of lenders' claim on collaterals as per the contractual agreement and seniority of claims and also sets a healthy precedent for further resolution down the line", said Lalitabh Shrivastawa, deputy VP at Sharekhan.
"No doubt the ultimate discretion on distribution is with the Committee of Creditors (CoC), whose decision should balance the interests of all stakeholders", the bench said. "This would defeat the entire objective of the Code which is to first ensure that resolution of 89 distressed assets takes place and only if the same is not possible should liquidation follow", it said.
Documents filed with the National Highway Traffic Safety Administration didn't say if there had been any fires or injuries. In a statement Friday, Nissan said a seal in the pump can leak brake fluid onto an electronic control circuit board.
Sur RTL, Philippe de Villeneuve a mis sa démission dans la balance: " Je suis dans la restauration de ce qui existe ". C'est une guerre d'influence qui se joue, dans l'ombre du chantier de Notre-Dame de Paris, entre deux hommes.
Mr Farage has claimed he had repeatedly been offered a seat in the House of Lords in an attempt to persuade him to "go quietly". A spokesperson for the Conservative Party said: "We don't do electoral pacts - our pact is with the British people".
He is in New Zealand on a one-month limited visa for the specific objective of speaking at a writers conference in Christchurch. The Manus Island centre was closed in late 2017 , but about 250 of the 1500 detainees remain in Papua New Guinea .
Whittock will be played by Michael Jibson and Ingram's wife, Diana, will be played by Fleabag actress Sian Clifford. AMC revealed a first look at Michael Sheen as TV Presenter Chris Tarrant in the upcoming three-part drama, Quiz .
Yovanovitch said she was "shocked and devastated" that she would be featured in a call between two heads of state in that manner. Citing "freedom of speech, ' President Trump says he has 'right to speak"; chief White House correspondent John Roberts reports.
Giant extinct primate is directly related to orangutans
This means that we can potentially retrieve related data on the evolutionary line resulting in people", says Frido Welker. It's the first time that such outdated genetic materials have been retrieved from warm, humid surroundings.
Second Ebola vaccine introduced in DR Congo
It aims to broaden the fight against an outbreak that according to official figures has claimed 2,193 lives. Four cases were recorded in Goma in 2019 but no new cases have been reported since August.