SC hearing on Essar case starts

ArcelorMittal on Wednesday assailed in the Supreme Court the order of the NCLAT asking it to pay Rs 7,000 crore to become eligible to bid for Essar Steel, saying that it had already divested its shares in the firms Uttam Galva Steel and KSS Petron, whose bad loans were directed to be paid by it.

  • Published 13.09.18
  •  

New Delhi: ArcelorMittal on Wednesday assailed in the Supreme Court the order of the NCLAT asking it to pay Rs 7,000 crore to become eligible to bid for Essar Steel, saying that it had already divested its shares in the firms Uttam Galva Steel and KSS Petron, whose bad loans were directed to be paid by it.

ArcelorMittal India (AMI), which has made a bid of Rs 42,000 crore for Essar Steel, alleged before a bench of Justices R.F. Nariman and Indu Malhotra that NuMetal was ineligible to bid for Essar.

On the other hand, NuMetal, a consortium of Russia's VTB-JSW, told the bench that it has also filed an appeal challenging the National Company Law Appellate Tribunal (NCLAT) order allowing ArcelorMittal to take part in the bid. "The law says that the petitioner (AMI) is disqualified for want of non-payment (of Rs 7,000 crore)," senior advocate Mukul Rohatgi, appearing for NuMetal, said.

Senior lawyer Harish Salve, appearing for ArcelorMittal, assailed the NCLAT order saying the company had exited Uttam Galva in February and its revised bid was submitted after it had divested from Uttam Galva. 

Moreover, ArcelorMittal never had any directors on the board of Uttam Galva, he added.

"We did not set up these companies (Uttam Galva Steel and KSS Petron). We did not exercise management powers. I had divested the shares. No bank has ever made any demand with regard to their loans. No personal guarantees were given," Salve said.

The bench posted the appeal of ArcelorMittal for hearing tomorrow when the appeal of Numetal may also come up for consideration. On being inquired as to whether the court would pass any interim order in the matter, the bench said it "will pass order straightaway. There will be no interim order." PTI

About
Author