NCLAT Declines Plea Of Essar Steel’s Operational Creditor
The National Company Law Appellate Tribunal declines the plea of an operational creditor of Essar Steel.
The National Company Law Appellate Tribunal declined the plea of an operational creditor of debt-ridden Essar Steel seeking recovery worth Rs 800 crore.
A two-member bench headed by Justice SJ Mukhopadhaya refused to entertain the plea by operational creditor Kamaljeet Singh who had requested NCLAT to direct the Ahmedabad bench of National Company Law Tribunal to hear his plea before taking any decision on ArcelorMittal’s resolution plan.
Singh claimed dues worth Rs 800 crore and is seeking its recovery.
On Tuesday, the NCLT 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 said the Rs 54,389 crore bid by Essar Steel Asia Holding, which is much higher than the winning bid by ArcelorMittal’s Rs 42,000 crore, is not maintainable as the only way to make a proposal is through Section 12A.