BHUBANESWAR: In a fresh turn of events in the Essar Steel resolution process, Essar Group director Prashant Ruia has moved a new application before the National Company Law Tribunal (NCLT) to take over the crippled company citing a Supreme Court judgement.
Seeking to set aside the bid by ArcelorMittal, the new petition was moved on February 1 by Ruia, along with former Essar Steel managing director Dilip Oommen and project director Rajiv Kumar Bhatnagar, citing the January 31 Supreme Court judgement in the Ruchi Soya case.
The application comes after NCLT-Ahmedabad on January 29 rejected the debt settlement proposal put forth by Essar Steel Asia Holdings, despite it being much higher at Rs 54,389 crore than ArcelorMittal’s offer worth Rs 42,000 crore.
The fresh petition claims that though Oommen and Bhatnagar were removed after the insolvency process began, they still “continue to be part of the day-to-day management of Essar Steel and hold the designations of managing director and director (projects), respectively.”
The NCLT bench comprising Manorama Kumari and Harihar Prakash Chaturvedi said it will decide Tuesday whether the petition will be admitted or not.
The applicants also urged the tribunal to direct the resolution professional (RP) of Essar Steel to “convene a meeting of the committee of creditors, wherein the resolution plans submitted by the potential resolution applicants be deliberated and discussed afresh and thereafter voted upon”.
In addition, the applicants urged the NCLT “to direct the RP to provide the applicants with copies of all the resolution plans submitted by potential resolution applicants for the resolution of the case”.
Meanwhile, the National Company Law Appellate Tribunal (NCLAT) on Monday directed the Ahmedabad bench of the NCLT to decide on the insolvency plea filed against Essar Steel (India) Ltd by 11 February.
NCLAT asks NCLT to decide on Mittal’s plan
The National Company Law Appellate Tribunal on Monday directed the NCLT Ahmedabad bench to take a final decision over ArcelorMittal’s I42,000 crore resolution plan for Essar Steel by February 11, failing which it would call records and pass order accordingly.