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Court Dismisses ArcelorMittal USA Arbitration Award Case against Essar

Steel News - Published on Fri, 03 Apr 2020

Image Source: wikimedia.org
PTI reported that a UK court has refused to issue a worldwide freezing order against the parent company of Essar Steel Ltd and members of promoter family Mr Ravi Ruia and Mr Prashant Ruia. High Court Judge Andrew Henshaw found no merit in the case being brought by ArcelorMittal to enforce a worldwide freeze on Essar assets to protect them from dissipation while the former pursues parallel legal remedies. London High Court said there was no ground to order a global freeze on the Ruia and Essar assets because the petitioners had failed to prove the Essar Group engaged in any transactions to defeat an earlier arbitration order. The order came as steelmaker ArcelorMittal looked to enforce a USD 1.5 billion arbitral award stemming from a soured supply agreement.

Essar spokesperson welcomed the decision saying the firm has "consistently argued that the underlying claims of wrongdoing and therefore the applications for the freezing orders were and continue to be ill-conceived and without any factual support. He said "We feel vindicated that the English Court has determined in this regard that ArcelorMittal USA LLC has no good arguable case to bring before the Court. This Judgement has also vindicated Essar and its founders from any wrongdoing with regard to historic legitimate business transactions that AMUSA had previously sought to mischaracterize to its advantage in both the English and Cayman Courts.”

ArcelorMittal in a statement said "This is a complex dispute relating to alleged conspiracies to harm ArcelorMittal USA. The recent judgment is subject to appeal and is in any event ancillary to the main conspiracy claim against members of the Ruia family and Essar Group''s parent company, amongst others."

Source :

Posted By : Rabi Wangkhem on Fri, 03 Apr 2020
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