Ruia, Essar Steel directors move NCLT to quash ArcelorMittal's takeover bid

The petition was moved on February 1 before the NCLT Ahmedabad bench and is likely to come up for hearing on Tuesday

In an attempt to get back into the Essar Steel game, Essar Group director Prashant Ruia has moved a fresh application before the National Company Law Tribunal (NCLT) Ahmedabad bench seeking quashing of ArcelorMittal's takeover bid of the insolvent steelmaker.

The petition moved on February 1, is likely to come up for hearing on Tuesday and it includes Essar Steel's former managing director Dilip Oommen as well as project director Rajiv Kumar Bhatnagar as joint petitioners. The two-member bench, comprising adjudicating authorities Harihar Prakash Chaturvedi and Manorama Kumari, are yet to admit the petition.

In what is being seen as the Ruia family's attempt to delay Essar Steel's insolvency process further, the petition calls for a stay on "any further proceedings in Interlocutory Application No.431 of 2018, preferred by the Resolution Professional under Section 30(6) of the Code". 

IA No. 431 of 2018 pertains to ArcelorMittal's bid, approved by 92 per cent CoC, which has come up for hearing after the NCLT Ahmedabad bench pronounced Essar Steel Asia Holding Ltd. (ESAHL)'s Rs 54,000 crore settlement proposal as non-maintainable.

Ruias' petition not only seeks for quashing and putting aside of Committee of Creditors (CoC)'s approval of ArcelorMittal's Rs 42,000 crore takeover bid but also has sought a copy of its resolution plan to be furnished to the promoters, citing a Supreme Court judgment. 

Based on the recent SC judgment in case of Ruchi Soya, the petitioners have sought that the suspended Board of Directors be included in all CoC meetings hereon. 

The petition has prayed for the NCLT Ahmedabad bench to direct Essar Steel's resolution professional Satish Kumar Gupta "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".