The NCLAT verdict had virtually rejected the priority principle for the payout of dues. “This will have retrospective effect where the resolution plan has not attained finality or has been appealed against,” says the amended provision passed by the cabinet. It had offered to pay Rs 41,909 crore to the secured financial creditors who would have recovered over 90 per cent of their claim. The resolution plan would now be binding on all stakeholders including the central government, any state government or local authority to whom a debt may be owed. The amendment today indicates that the same manner of priority will be ordained in a resolution plan.

Source: The Telegraph July 17, 2019 19:41 UTC