Business Standard

NCLAT adjourns Essar Steel case till March 15

IANS  |  New Delhi 

The (NCLAT) has adjourned hearing on the case till March 15, asking the promoters to clear all the group's dues as per the Supreme Court's order and then come back to it.

The development comes after MD and executives, as well as the Standard Chartered Bank, filed a fresh petition before the NCLAT on Monday, seeking to set aside the ArcelorMittal's winning bid approved by Law Tribunal's Ahmedabad bench.

Essar Steel's debt stands at Rs 49,000 crore while that of its former parent, Essar Group, adds up to over Rs 80,000 crore.

The tribunal on Thursday told the the petitioners to clear the whole of Essar Group's dues first and then come with a resolution plan for Essar promoters' sought a week's time for this.

The bench also asked to raise its bid for Essar Steel as the promoters of the insolvent company have proposed a resolution plan with a higher bid.

The ArcelorMittal's resolution plan which was approved by the Ahmedabad-bench of NCLT had a bid of Rs 42,000 crore, compared to Ruias' bid of Rs 54,389 crore.

The plan, approved by the NCLT, sought various exemptions such as stamp duty, fees, transfer charges, and so on. The NCLT held that it is not in a position to grant these exemptions and that the resolution applicant will have to make appropriate submissions to the respective departments of the government.

The NCLT provided a time frame of one year to to obtain various approvals and exemptions.

In a related development, official sources have told IANS that the is ready to order a change in the management of the

Sources said the is waiting for the written order from the NCLT after which it would approve and order a management change in Essar Steel.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, March 14 2019. 20:48 IST