Granting one more opportunity in the Essar Steel case, Supreme Court on Thursday allowed mining major ArcelorMittal and Russia’s VTB Capital-backed NuMetal to submit revised bids after paying any outstanding dues in two weeks, TV news channels reported. The Supreme Court bench comprising Justices R F Nariman and Indu Malhotra held that both the companies were ineligible under amended Insolvency and Bankruptcy Code (IBC) to make a bid for Essar Steel, PTI reported. However, the bench granted both firms a new opportunity after taking note of the petition of Committee of Creditors (CoC) that it doesn’t want Essar Steel liquidation, report added.
Under Article 142 of the Constitution, the apex court exercised its extraordinary power in allowing ArcelorMittal and NuMetal to make fresh bids, the report said.
The Committee of Creditors (CoC) will consider both proposals within eight weeks after curing of defects, Supreme Court said. The apex court has considered plea of CoC that it does not want liquidation of Essar Steel and granted fresh opportunity to both firms, PTI reported. If nothing materialises within eight weeks then Essar Steel shall go into liquidation, Supreme Court also said.
Earlier, the bench had reserved its verdict on September 27 after counsels for all the parties, including the Committee of Creditors (CoC), concluded their arguments that had continued for eight days.
Meanwhile, after being identified by the Reserve Bank of India (RBI) in its ‘Dirty Dozen’ list, the outstanding loan of Essar Steel was Rs 45,600 crore. Just as company central bank’s decision for its early resolution survived court battles, the company got involved in the long-drawn battle between ArcelorMittal and Russia’s NuMetal Mauritius.