Operational creditors’ plea hearing over, NCLAT informed
ArcelorMittal’s wait for Essar Steel has got longer with the National Company Law Appellate Tribunal (NCLAT) on Tuesday granting more time to the Ahmedabad bench of the NCLT to complete the hearing of the ₹42,000 crore resolution plan submitted by the steel major for debt-ridden Essar Steel.
Postponing the hearing to February 28, a two-member bench headed by Justice S.J. Mukhopadhaya ordered that the Ahmedabad bench of NCLT complete the hearing by February 19 and pass orders. “NCLAT has extended the deadline from February 11 to February 19 to complete the hearings and pass orders,” an official in the know of the development told The Hindu. During the hearing, NCLAT was informed that the Ahmedabad bench had completed hearing on operational creditors’ plea and was scheduled to hear shareholders’ plea later in the day on Tuesday.
On February 4, the NCLAT asked NCLT Ahmedabad to decide on the case by February 11, failing which it would call records and pass order.
Earlier, on January 29, the NCLT Ahmedabad rejected the debt settlement proposal put forth by the shareholders of Essar Steel citing that the petition was not maintainable and the only way to make a proposal was through Section 12A under the IBC.
This order was challenged by the Ruias in the appellate tribunal on February 11.
More than 570 days have passed since Essar Steel was referred to the bankruptcy court, against the resolution deadline of 270 days.
In a last-minute move, the Ruias, through Essar Steel Asia Holdings, had submitted a ₹54,000-crore proposal to repay debts, countering ArcelorMittal’s offer of ₹42,000 crore, the day CoC voted in favour of ArcelorMittal’s offer.
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