The National Company Law Appellate Tribunal (NCLAT) will deliver its order on issues relating to the eligibility of Numetal and ArcelorMittal, the two bidders for Essar Steel in the first round, on Friday. The judgment is expected to resume the process of debt resolution in one of the first of Reserve Bank of India's big-ticket cases recommended for debt resolution under the Insolvency and Bankruptcy Code (IBC).
Essar owes lenders around Rs 490 billion.
In May, the NCLAT had put on hold the resolution process for Essar Steel. The appellate tribunal had asked the resolution professional, the committee of creditors (CoC) and the National Company Law Tribunal (NCLT) to refrain from passing any order in the matter related to the insolvency resolution of Essar Steel, including liquidation.
The stipulated 270-day deadline for resolution under the Insolvency and Bankruptcy Code (IBC) for Essar Steel ended on April 29. However, the NCLT Ahmedabad Bench had excluded the period when the application was filed in the tribunal and the order was pronounced, which too ended on May 28.