The National Company Law Appellate Tribunal (NCLAT) on Tuesday allowed a plea by the committee of creditors (CoC) for Essar Steel Ltd seeking an early hearing on the cross appeals moved by two resolution applicants for the company, ArcelorMittal India Pvt Ltd and Numetal Ltd, challenging their disqualification from the bidding process.
The matter, which was posted for hearing on 23 July, would now be heard on 30 May.
In April, the National Company Law Tribunal (NCLT) had set aside the first round of bidding for Essar Steel by Numetal and ArcelorMittal on the ground that the CoC and the resolution professional did not follow the procedure prescribed under the Insolvency and Bankruptcy Code (IBC).
The tribunal, however, allowed the two final resolution applicants, ArcelorMittal and Numetal, to cure their ineligibility under Section 29A.
Following the NCLT order, the two resolution applicants preferred an appeal before NCLAT.
On 22 May, the appellate tribunal directed the insolvency resolution professional and CoC for Essar Steel Ltd as well as NCLT’s Ahmedabad bench to not pass any order, including an order of liquidation, with respect to Essar Steel’s insolvency, effectively putting the corporate insolvency process for debt-ridden Essar Steel on hold.
Source: Livemint, May 29, 2018