Pass Essar verdict by Jan 31, NCLAT orders Ahmedabad Bench

Last Updated: Wed, Jan 23, 2019 17:18 hrs
Essar Group

New Delhi: Hearing an appeal by ArcelorMittal for early resolution of bankrupt Essar Steel, the National Company Law Appellate Tribunal (NCLAT) on Wednesday ordered its Ahmedabad Bench to pass the verdict in the case by January 31.

Failing which, the two-member bench of NCLAT headed by Justice S.J. Mukhopadhyay said it would call the matter and pass an order at its next hearing.

The appellate tribunal has asked for the matter to be listed for next hearing on February 4.

ArcelorMittal's Rs 42,000 crore resolution plan was approved by the Committee of Creditors (CoC) to Essar Steel last October and has been waiting for the Ahmedabad NCLT's approval.

The next hearing on the matter by the Ahmedabad Bench is on January 31.

However, the Ahmedabad Bench has also to decide on the maintainability of the Rs 54,000 crore bid by Essar Steel's arm Essar Steel Asia Holdings after the CoC approved ArcelorMittal's bid.

The Essar Group has sought withdrawal of the insolvency proceedings saying its bid will take care of all the creditors, including the operational creditors.

Earlier too, the NCLAT, on being approached by the CoC on January 3, had asked the NCLT bench to take an early decision in accordance with the law.

During the last hearing of the case at NCLT Ahmedabad on January 7, a two-member bench had reserved its judgement on the maintainability of the Essar Steel arm's plea seeking withdrawal from the resolution process and offered to pay Rs 54,389 crore for settlement to retain control of the company.

In its next hearing on January 31, the Ahmedabad Bench is likely to pass an order on the same as well as take-up applications of other operational creditors during the same hearing.