NCLAT Extends Deadline For NCLT Ahmedabad To Decide On Essar Steel Insolvency Case To Feb. 19
The National Company Law Appellate Tribunal on Tuesday granted one more week to the National Company Law Tribunal Ahmedabad to pass its order on the Rs 42,000-crore resolution plan submitted by ArcelorMittal for the debt-ridden Essar Steel Ltd.
A two-member bench headed by Justice SJ Mukhopadhaya has directed the Ahmedabad bench of the NCLT to decide the matter by Feb. 19.
During the hearing, NCLAT was informed that Ahmedabad bench has completed hearing on operational creditors plea and is scheduled to hear suspended Essar directors later in the day on Tuesday.
Earlier on Feb. 4, the NCLAT has asked NCLT Ahmedabad to decide by Feb. 11, failing which it would call the records and pass order.
The NCLAT direction came while hearing an application filed by ArcelorMittal, whose Rs 42,000-crore takeover proposal of the indebted steel-maker has been approved by the committee of creditors and is pending before the NCLT for approval.
Earlier, on Jan. 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 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.