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Ruia’s move to NCLAT against NCLT order on Essar Steel resolution case

Steel News - Published on Tue, 12 Feb 2019

Image Source: ET
Indian Express reported that Essar Steel promoters, the Ruias, moved the National Company Law Appellate Tribunal against the January order of the Ahmedabad bench of the National Company Law Tribunal which had rejected its plea for placing an offer for resolution of the company.

On January 29, the two-member Ahmedabad bench of the NCLT had ruled that the plea by Essar Steel Asia Holdings’ to consider the Ruias’ settlement plan for Essar Steel was not maintainable. The NCLT had said the Essar plea was not maintainable under Section 60 (5) of the Insolvency and Bankruptcy Code (IBC), which empowers it to have jurisdiction to entertain or dispose of any application or proceeding by or against the debtor or corporate person.

As many as 31 operational creditors of Essar Steel had moved the NCLT in five separate petitions urging that it direct the CoC to ensure full payment to them and take necessary steps to modify ArcelorMittal’s resolution plan for that. Alternatively, they had urged the tribunal to direct the CoC to also consider the last-minute offer of the Essar Steel promoters which promises to pay all creditors in full.

Earlier, in January, the lenders of Essar Steel had moved the NCLAT urging that it direct NCLT to expeditiously hear the matter. The appellate tribunal had directed that only one operational creditor will argue the case and not all 31. It was against this order that three of the operational creditors had moved the SC.

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Posted By : Ratan Singh on Tue, 12 Feb 2019
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