NCLAT extends deadline till February 19 for NCLT to decide on Essar Steel insolvency

The Ahmedabad bench heard a plea from operational creditors and is scheduled to hear suspended Essar directors later in the day.

Published: 12th February 2019 12:23 PM  |   Last Updated: 12th February 2019 12:23 PM   |  A+A-

Essar Steel

Essar Steel. (File Photo | Reuters)


NEW DELHI: The National Company Law Appellate Tribunal (NCLAT) on Tuesday granted a week more time to NCLT Ahmedabad to decide over the Rs 42,000 crore resolution plan submitted by ArcelorMittal for the debt-ridden Essar Steel.

A two-member bench headed by Justice SJ Mukhopadhaya has directed the Ahmedabad bench of the National Company Law Tribunal (NCLT) to decide over the matter by February 19.

During the hearing, NCLAT was informed that Ahmedabad bench has completed hearing on operational creditors plea and is scheduled to hear suspended Essar directors later in the day on Tuesday. Earlier on February 4, the NCLAT has asked NCLT Ahmedabad to decide by February 11, failing to which it would call records and pass an order.

ALSO READRuia moves NCLT to quash ArcelorMittal bid for Essar Steel

The NCLAT direction came while hearing an application filed by ArcelorMittal, whose Rs 42,000 crore takeover proposal of the indebted steel-maker has been approved by the committee of creditors (CoC) and is pending before the NCLT for approval.

ALSO READ: The curious case of Essar Steel IBC proceedings​

Earlier, on January 29, NCLT Ahmedabad had rejected the debt settlement proposal put forth by the shareholders of Essar Steel saying the offer violates Section 12A of the Insolvency and Bankruptcy Code. The NCLT had said that Rs 54,389-crore offer by Essar Steel Asia Holding, which is much higher than the ArcelorMittal's Rs 42,000 crore bid, is not maintainable as the only way to make a proposal is through Section 12A. Essar Steel owns a 10-million-tonne steel mill in Gujarat.

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp