Section 12A of IBC doesn't apply to Essar Steel case, says ArcelorMittal

Sources close to Essar said Section 12A was introduced in June 2018

ArcelorMittal said on Thursday that Section 12A of the Insolvency and Bankruptcy Code (IBC), under which the Ruias have proposed to withdraw Essar Steel from the Corporate Insolvency Resolution Process (CIRP), did not apply to the debt-ridden company.

"Our understanding is that the IBC's Section 12A does not apply to the resolution process of Essar Steel. Section 12A clearly states that any application to withdraw must be submitted prior to the issuance of the invitation for expressions of interest and must be accompanied by a bank guarantee for the specified amounts," Arcelor said.