Published on : 29 Sep 2025, 11:14 am 4 min read

When the second round of litigation in Essar Steel India Ltd Committee of Creditors v. Satish Kumar Gupta, (2020) was heard by the Supreme Court, amongst others, the amendment to Section 30(2)(b), which was brought into effect on August 16, 2019, was discussed by Justice Rohinton Nariman in paragraph 80 of the judgment.

In effect, the said amendment provided the minimum liquidation value to operational creditors and dissenting financial creditors in a resolution plan. It was held that this provision is to ensure that the majority in the Committee of Creditors does not “cram down” the interests of operational and dissenting financial creditors.

After Essar’s judgment, three judgments of the Supreme Court had occasion to deal wit

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