Industry

NCLAT to hear Numetal, ArcelorMittal pleas on May 17

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Issues notices to RP, credit committee, 2 petitioners; replies to be filed in a week

The National Company Law Appellate Tribunal (NCLAT) on Friday agreed to hear on May 17 the cross petitions filed by Essar Steel bidders, Numetal Ltd. and ArcelorMittal India Ltd., challenging eligibility criteria.

The NCLAT issued notices to a committee of Essar Steel creditors, the resolution professional running an auction of the firm and the two bidders on the cross petitions.

Russia’s VTB Capital-backed Numetal Ltd. has challenged a lower court order allowing rival ArcelorMittal to clear bank dues of associate companies so that it can become eligible to acquire Essar Steel. ArcelorMittal, on the other hand, has challenged its disqualification from bidding. The cross petitions were mentioned before a bench of the NCLAT which issued notices, and replies and rejoinders to which are to be filed within a week. The matter has been fixed for hearing on May 17.

The NCLAT took up the petitions on a day when a panel of lenders to Essar Steel was slated to meet to decide if fresh bids were to be called. In the petition, Numetal said the Ahmedabad bench of the National Company Law Tribunal had disqualified ArcelorMittal India from bidding for Essar Steel on grounds that it was a promoter company of firms that had defaulted on bank loans.

The NCLT had, however, “erred” in permitting ArcelorMittal India Ltd. “to cure the ineligibility by making payment of the overdue amounts of Uttam Galva and KSS Petron” within 30 days, the petition said. ArcelorMittal, in a separate petition, challenged its disqualification on the grounds that it had exited Uttam Galva before submitting a bid for Essar Steel on February 12.

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Printable version | Jan 28, 2020 10:18:20 AM | https://www.thehindu.com/business/Industry/nclat-to-hear-numetal-arcelormittal-pleas-on-may-17/article23701734.ece

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