Withdrawal Of Corporate Insolvency Resolution Process

Leaving a major imprint upon the nascent insolvency law regime, the Essar Steel insolvency debate has touched upon almost every aspect of the Code except achieving one its major objectives i.e. speedy resolution of the corporate debtor. Its resolution process has faced serious impediments – continuous struggle between the Committee of Creditors, its bidders such as Arcelor Mittal, Numetal etc.; disqualification of bidders, enactment of Section 29A are naming a few. Adding on to this list, a new twist that has come to limelight is the effort of the Ruia family whereby they have offered to pay approximately INR 54,000 crores to the lenders while seeking to withdraw the insolvency petition against the company in return. This attempt of the Ruias is said to have come under the intention to retain control over Essar steel. Consequently, it has also attracted opposition from Arcelor Mittal who had won the bid after investing much time and effort.