In a resolution plan there can be no difference between a financial creditor and an operational creditor in the matter of payment of dues, and that therefore, financial creditors and operational creditors deserve equal treatment under a resolution plan.

This was the order passed by the NCLAT in the matter of Essar Steel and accordingly, the NCLAT has re-distributed the proceeds payable under the approved resolution plan as per the method of calculation adopted by it so that all financial creditors and operational creditors be paid 60.7% of their admitted claims. This order has raised severe concerns in the credit market on account of the uncertainty it can cause. Subsequently, the matter landed in Supreme Court wherein the apex Court made significant observations which provided certain relief.