The Supreme Court will hear on Wednesday a plea by ArcelorMittal challenging the National Company Law Appellate Tribunal order asking it to first clear Rs 7,000-crore dues of Uttam Galva and KSS Petron by September 11 to turn eligible to bid for insolvent Essar Steel.
The bench of Chief Justice Dipak Misra, Justice A.M. Khanwilkar and Justice D.Y. Chandrachud agreed to hear the matter on Wednesday after lawyer Raghav Shankar mentioned the matter for urgent hearing. However, court agreed to hear the matter on Wednesday.
On September 7 while holding that Numetal's second bid for insolvent Essar Steel was eligible, the NCLAT had asked ArcelorMittal to first clear the dues of Uttam Galva and KSS Petron by September 11 to turn eligible.
NCLAT had ordered the Lakshmi Mittal company to pay about Rs 7,000 crore in three working days by September 11 to become eligible to bid for Essar Steel facing liquidation proceedings under Insolvency and Bankruptcy Code (IBC).
The world's largest steelmaker had made a conditional deposit of Rs 7,000 crore in its own current account saying it was ready to deposit the amount in the non-performing accounts of Uttam Galva and KSS Petron if its bid was successful.
However, the tribunal ruled that conditional offer to pay the overdues was not acceptable and that actual transfer of money had to be done before its resolution plan is considered.
Section 29A of the Insolvency and Bankruptcy Code (IBC) disqualifies a promoter of NPA from submitting a resolution plan.
ArcelorMittal had on Monday (September 10) hiked its bid for Essar Steel to Rs 42,000 crore and also said that it was willing to settle Rs 7,000 crore liabilities of Uttam Galva and KSS Petron, with which he was previously associated.
With fresh offer of Rs 42,000 crore, ArcelorMitta would get ahead of Numetal's second bid of Rs 37,000 crore.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)