Creditors’ wisdom should be heeded

The verdict of the Supreme Court on 15 November 2019, in the case of Committee of Creditors of Essar Steel India Limited through Authorised Signatory v Satish Kumar Gupta & Ors, has brought clarity to various key questions of law relating to the Insolvency and Bankruptcy Code, 2016 (IBC), such as the role to be played by the Committee of Creditors in the Corporate Insolvency Resolution Process, the scope of interference of the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) in the decisions made by the Committee of Creditors, the manner of utilization of the profits of the corporate debtor during the corporate insolvency resolution process, the liability of the guarantors, the powers and constitution of a sub-committee by the Committee of Creditors, and the principal of equality between the secured and unsecured creditors.