NCLAT directs NCLT Ahmedabad to take call on ArcelorMittal’s Essar Steel bid by March 8

February 28, 2019 11:59 am | Updated November 28, 2021 09:33 am IST - New Delhi

Essar group headquarters in Mumbai. File

Essar group headquarters in Mumbai. File

The National Company Law Appellate Tribunal (NCLAT) on Thursday directed the NCLT Ahmedabad Bench to take a decision on the ₹42,000-crore resolution plan submitted by ArcelorMittal for debt-ridden Essar Steel by March 8.

A two-member NCLAT Bench, headed by Justice S.J. Mukhopadhaya, said that if the Ahmedabad Bench of National Company Law Tribunal (NCLT) fails to pass an order by this deadline, it would call records and pass an order.

“Adjudicating authority [NCLT] has to pass final order by March 8, failing which this appellate tribunal may call all records including resolution plan approved by Committee of Creditors [CoC],” said NCLAT.

The appellate tribunal has directed to list the matter on March 13 for next hearing.

It has also directed the registry of NCLT to communicate this order to the Ahmedabad-based Bench and its members.

The NCLAT directive came while hearing an application filed by ArcelorMittal whose ₹42,000-crore takeover proposal of Essar Steel has been approved by the CoC, and is pending before the NCLT for approval.

Earlier, on January 29, NCLT Ahmedabad had rejected the debt settlement proposal put forth by the shareholders of Essar Steel saying the offer violates Section 12A of the Insolvency and Bankruptcy Code.

The NCLT had said that ₹54,389-crore offer by Essar Steel Asia Holding, which is much higher than the ArcelorMittal’s ₹42,000 crore bid, is not maintainable as the only way to make a proposal is through Section 12A.

Essar Steel owns a 10-million-tonne steel mill in Gujarat.

Top News Today

Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.