Numetal to Supreme Court: NCLAT wrongly allowed Arcelor to pay dues

Russia’s VTB Bank-promoted firm Numetal has alleged in the Supreme Court that NCLAT “wrongly” applied legal provisions to enable its rival bidder ArcelorMittal to pay the dues of two debt-ridden firms even after it had bid for Essar Steel. 

A Bench of Justices R F Nariman and Indu Malhotra has been hearing the cross appeals of Numetal and steel and mining major ArcelorMittal against the National Company Law Appellate Tribunal (NCLAT) order. 

“The present appeal is preferred under ...the IBC against the judgment passed by the NCLAT..., whereby the NCLAT has wrongly applied Section 30 (4) to enable one Arcelor India to pay overdue amounts of non-performing assets even after submission of its Resolution Plan(s) for the resolution of the insolvency of Essar Steel India allowing AM India to cure its ineligibility,” Numetal said.