You are here: Home » Companies » News
Business Standard

Essar Steel auction: Numetal moves Supreme Court against NCLAT order

The NCLAT in its order on September 7 had directed ArcelorMittal to pay dues by September 11

Ishita Ayan Dutt 

steel

on Wednesday moved the challenging the time given by the National Company Law Appellate Tribunal (NCLAT) to ArcelorMittal for payment of dues on account of defaulting firms — Uttam Galva Steels and KSS Petron. Numetal’s plea is based on the ground that there is no provision under the and Bankruptcy Code (IBC), which allows three days' time to clear dues to become a qualified bidder.

ALSO READ: ArcelorMittal's raised offer for Essar Steel plunges shares by 2.6%

The in its order on September 7 had directed Arcelor to pay dues by September 11. “In all other IBC cases, resolution applicants were required to clear the dues before submitting any resolution plan,” said legal sources close to Arcelor getting three days’ time to pay dues of Uttam Galva and KSS Petron comes as a surprise since the IBC law does not provide for such an extended window to pay and become eligible, they said. Arcelor's attempt to raise its offer, even before it has fulfilled its eligibility conditions as laid down by the NCLAT, serves to deflect attention from its obligation to clear dues of Uttam Galva and KSS to become eligible to bid for Essar Steel, the legal sources added.

First Published: Thu, September 13 2018. 00:42 IST
RECOMMENDED FOR YOU