The National Company Law Appellate Tribunal, today, has asked the NCLT’ Ahmedabad bench to pass its final verdict on the insolvent Essar Steel. The appellate tribunal has directed National Company Law Tribunal to determine its final order on the ArcelorMittal’s Rs. 42,000 crores resolution plan by March 8.
Prior to NCLAT today’s direction, the tribunal had asked NCLT to deliver its final order in the case till February 28. The appellate tribunal has stated that the NCLAT intends to take over the hearing from March 1.
The resolution plan proposed by ArcelorMittal’s was opposed by 40 operational creditors, out of which 8 operational creditors’ plea was dismissed by NCLT yesterday. The order on the cases filed by the remaining 32 operator creditors is yet to be pronounced by NCLT, which is causing the delay in the court’s final verdict.
In October 2018, the CoC for Essar Steel selected the Rs. 42000 crores resolution plan by Lakshmi Mittal-owned ArcelorMittal, against the dues of over Rs 49,000 crore. At the time, Essar steel promoter’s Ruia family proposed Rs. 54000 crores settlement plan which was rejected by the lenders.
In the previous month, on January 29, the NCLT said that the Ruia family don’t have the right to seek for a settlement of loans as under the Insolvency and Bankruptcy Code only the parties that had filed the insolvency petition in the first place could settle the loans.
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