While the NCLAT had earlier said it would hear the matter only on July 23, it decided to hear the case at the beginning of the month after bankers appealed for an early hearing on the ground that a delayed hearing would lead to financial losses for them.
The National Company Law Appellate Tribunal (NCLAT) will hear ArcelorMittal and NuMetal’s petitions on the Essar Steel matter on July 2, it said on Wednesday. While earlier the NCLAT had said it would hear the matter only on July 23, it decided to hear the case at the beginning of the month after the bankers appealed for an early hearing, on the ground that a delayed hearing would lead to financial losses for them. Essar Steel’s RP, the CoC and the adjudicating authority would not be able to pass any order, including liquidation, in the interim period, the NCLAT has said. The NCLAT will have to hear multiple petitions from both the bidders on the bids they have submitted for the bankrupt Essar Steel. While NuMetal has petitioned for the second round of bids to be considered, ArcelorMittal has appealed for its first bid to be considered as eligible.
ArcelorMittal’s first bid for the bankrupt Essar Steel was disqualified by the RP on the ground that it was a promoter of Uttam Galva and KSS Petron, both of which have defaulted on loans. Numetal’s bid was disqualified since one of the persons associated with the company, Rewant Ruia, is related to the promoters of Essar Steel. The shareholders of NuMetal include Russia’s VTB Bank and engineering firm Tyazhpromexport, financial investor Aurora Enterprises (in which Ruia has an interest) and commodity trading company Indo International Trading.