NCLAT directs NCLT Ahmedabad to take call on ArcelorMittal's Essar Steel bid by 8 March
Earlier, on 29 January, 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 appellate tribunal has directed to list the matter on 13 March for next hearing
The NCLAT directive came while hearing an application filed by ArcelorMittal
The committee of creditors approved ArcelorMittal's Rs 42,000-crore takeover proposal of Essar Steel
New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Thursday directed the NCLT Ahmedabad bench to take a decision on the Rs 42,000-crore resolution plan submitted by ArcelorMittal for debt-ridden Essar Steel by 8 March.
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 8 March, 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 13 March 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 Rs 42,000-crore takeover proposal of Essar Steel has been approved by the CoC, and is pending before the NCLT for approval.
Earlier, on 29 January, 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 (IBC).
The NCLT had said that Rs 54,389-crore offer by Essar Steel Asia Holding, which is much higher than the ArcelorMittal's Rs 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.
ArcelorMittal seeks disqualification of Russia's VTB Capital-backed NuMetal's bid for Essar Steel acquisition
Locked in a direct fight to acquire Essar Steel, ArcelorMittal on Thursday sought disqualification of Russia's VTB Capital-backed NuMetal Ltd, alleging that the firm was acting in concert with delinquent promoters of Essar group
Essar Steel is being auctioned after the company defaulted on payment of about Rs 49,000 crore loan to lenders.
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The world's largest steel-maker had posted a net income of $1.2 billion in the year-ago quarter, ArcelorMittal said in a statement.