SC verdict on NuMetal-ArcelorMittal row likely on Thursday

The Supreme Court will likely pronounce on Thursday its verdict on NuMetal and the steel magnate Lakshmi Niwas Mittal-owned ArcelorMittal's row over the takeover of the ailing Essar Steel facing insolvency proceedings under Insolvency and Bankruptcy Code (IBC).

The ANuMetal has assailed the National Company Law Tribunal (NCLT) and the Appellate Authority (NCLAT) order giving ArcelorMittal time to purge itself of the Rs 7,000-crore liability of Uttam Galva and KSS Petron, to be eligible to bid for the resolution plan for Essar Steel.

ArcelorMittal had challenged the National Company Law Appellate Tribunal order asking it to first clear Rs 7,000-crore dues of Uttam Galva and KSS Petron by September 11 to turn eligible to bid for insolvent Essar Steel.

ArcelorMittal had contended that they are ready to pay but it can't be made a precondition for submitting a resolution plan.

It had contended that as it wanted to have its presence in India's steel sector and also live harmoniously with the banks.

The judgment by the bench of Justice Rohinton Fali Nariman and Justice Indu Malhotra is also likely to address the gray areas of the new Insolvency and Bankruptcy Code (IBC).

Justice Rohinton Fali Nariman will pronounce the judgment.

The top court had on September 13 said NCLT and the Appellate Authority (NCLAT) should refrain from interfering in insolvency resolution proceedings by the Interim Resolution Professional (IRP) and the Committee of Creditors (CoC) of the lender banks of a sick enterprise under the Insolvency and Bankruptcy Code.

Making it clear that the adjudicating authorities don't come into picture when resolution process is before IRP and CoC, the court had said that it was only after the resolution plan is finalised that the "adjudicating authorities can look into the whole thing including if it is in accordance with the law."

--IANS

pk/prs