The Supreme Court (SC) on Monday dismissed a plea by 28 operational creditors of Essar Steel seeking to be heard by the National Company Law Tribunal (NCLT) before any decision was taken on ArcelorMittal’s bid for the company. The court also rejected their plea seeking a stay on the National Company Law Appellate Tribunal’s (NCLAT’s) order asking the NCLT Ahmedabad Bench to take a decision on ArcelorMittal’s bid by February 11.
Now, the NCLT will be able to decide the fate of ArcelorMittal’s bid quickly.
The court was of the opinion that the promoters of Essar Steel were acting through the operational creditors to delay the insolvency process. It said 571 days had passed since the insolvency process began for Essar Steel, and it must not be delayed. The deadline for an insolvency process is 270 days.
Operational creditors such as Indian Oil Corporation and the Gujarat government had moved court, claiming dues of Rs 3,500 crore and Rs 500 crore, respectively.
In its order, the NCLAT had said only a representative of the operational creditors could be given the opportunity to raise any objections to ArcelorMittal’s resolution plan for Essar Steel.
via Essar Steel insolvency case: SC clears decks for ArcelorMittal’s bid | Business Standard News