The National Company Law Appellate Tribunal (NCLAT) has directed the resolution professional, committee of creditors and NCLT not to pass any order in the matter related to insolvency resolution of Essar Steel.
The appellate tribunal also admitted the cross petitions filed by Russia’s VTB Capital-based NuMetal and Arcelor Mittal, two resolution applicant challenging their disqualification for Essar Steel.
“Appeals admitted. List for hearing on July 23,” said an NCLAT bench headed by Chairman Justice S J Mulhopadhaya. It further added, “Until further order RP, CoC and adjudicating authority (NLT) will not pass any order including order of liquidation of corporate debtor.”
The appellate tribunal further said that the resolution professional (RP) of the debt ridden firm would ensure day-to-day running. NCLAT would conduct daily hearing from July 23 on the matter.
During the proceedings, senior advocate Harish Salve, appearing for Arcelor Mittal, sought stay over the second round of bidding contending that it has already cleared Rs 7,000 crore dues of Uttam Galva and KKS Petron.
However, senior advocate Mukul Rohatgi asked the tribunal to allow to open the second round of bidding, in which it has placed over Rs 37,000 crore bid. Essar Steel is being auctioned after the company defaulted on payment of about Rs 49,000 crore loan to lenders.
Both NuMetal and ArcelorMittal put in a second round of bids after the first bids were opined to be invalid — NuMetal because of it being 25 per cent owned by Aurora Trust of Ruia family, the promoters of Essar Steel; and ArcelorMittal because of it being holding shares in loan defaulting companies Uttam Galva Steel and KSS Petron.