The Committee of Creditors (CoC) told the Supreme Court on Tuesday that the “corporate veil” has to be lifted to test the eligibility of ArcelorMittal and Russia’s VTB Bank-promoted firm NuMetal, which are bidding for debt-ridden Essar Steel, to ascertain the persons behind them.
Senior advocate Gopal Subramaniam, representing the Committee of Creditors, said that the concept of “lifting of corporate veil” had to be given “exhaustive” interpretation to ensure that the “persons related to” or “persons acting in concert” with the debt-ridden firms did not come back to bid for the company. During the hearing, a Bench headed by Justice Rohinton Fali Nariman queried about the residence of Ravi Ruia and his son Rewant Ruia after it was told that NuMetal was incorporated in Mauritius.
“Just show us something from the record, where these two individuals are ordinarily residing,” a Bench, also comprising of Justice Indu Malhotra, said.
The Bench’s oral query came during the hearing of pleas filed by ArcelorMittal and NuMetal challenging one another’s eligibility to bid for Essar Steel, against which a Corporate Insolvency Resolution Process was initiated last year.
The advancing of arguments would continue on Wednesday.
