Numetal, ArcelorMittal rightly disqualified: Essar Steel RP

The resolution professional handling the Essar Steel case today informed the NCLT that Numetal and ArcelorMittal were rightly disqualified from the bidding to acquire the steel firm, even as bankers said the law permits them to invite more bids to get the best price.

While the resolution professional's (RP) counsel Darius Khambatta maintained that the decision to disqualify both the bidders from the first round under section 29 of the IBC was "fair and legal", Numetal's counsel Mukul Rohatgi reiterated that the rival bidder ArcelorMittal should be barred "forever".

Following a heated debate and lengthy hearing here today, the tribunal, comprising adjudicating authority Manorama Kumari and Harihar Prakash Chaturvedi, posted the matter for further hearing tomorrow.

Numetal and ArcelorMittal has knocked the doors of the NCLT over their disqualification in the first round of bidding that ended on February 12 claiming that rules have been followed before submitting their bids.

While arguing about the disqualification of Numetal from the first round of bidding, Khambatta maintained the decision of RP was "fair and legal".

He argued that since Numetal was formed just before submitting the resolution plan, it is evident that it was formed for that purpose only.

Khambatta also pointed out two different views taken by Numetal about its structure. "When suited, they said it is a body corporate. But, when suited, for the purpose of bidding, they said it is a joint venture and its shareholders have the strength to run Essar Steel."