The National Company Law Appellate Tribunal (NCLAT) on Tuesday extended the time till February 28 for the National Company Law Tribunal (NCLT) to pass orders in the ongoing corporate insolvency resolution process of Essar Steel. The NCLT has time till February 19 to complete hearing in the Rs 42,000-crore resolution plan submitted by ArcelorMittal for Essar Steel, said a two-member Bench led by Chairperson Justice S J Mukhopadhaya.
It has also directed the Ahmedabad Bench of NCLT to conduct daily hearings in the case to ensure pleas of all creditors were heard. Earlier on Monday, NCLT Ahmedabad had, while reserving its order on the objections raised by operational creditors, asked all of them to give a written submission by February 13. Essar Steel's committee of creditors (CoC) had earlier argued in the NCLT that all operational creditors with dues of less than Rs 1 crore would together get Rs 196 crore. Those with dues of Rs 1 crore or more would get a token Rs 1.
The NCLAT had on February 4 asked the NCLT to start hearing ArcelorMittal's resolution plan, submitted under Section 31 of the Insolvency and Bankruptcy Code (IBC), and decide on the matter by February 11 (Monday). If this did not happen, said the NCLAT, it would take over the matter and decide on it by February 12 (Tuesday).
On January 29, NCLT Ahmedabad had rejected a debt settlement offer made by promoters of Essar Steel, holding that it violated Section 12A of the IBC. In its order, NCLT Ahmedabad had said that the Rs 54,389-crore offer by Essar Steel Asia Holding, though much higher than ArcelorMittal's Rs 42,000-crore bid, was not maintainable.