NCLT defers hearing in ArcelorMittal, Numetal plea over Essar Steel bid rejection

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New Delhi, Mar 27: The much awaited hearing at the NCLT’s Ahmedabad bench over the rejection of bids of ArcelorMittal and Numetal in the Essar Steel insolvency resolution process has been deferred till April 4, reports said.
The NCLT bench has asked the parties to file replies by April 2. The next hearing will take place on April 4, reports said.
Both ArcelorMittal and Numetal have moved the NCLT challenging the rejection of their bids for Essar Steel.
While ArcelorMittal’s bid was rejected as it held promoter stake in the defaulting firm Uttam Galva, the company has sold its entire stake in Uttam Galva and received a nod from the bourses declassifying it as Uttam Galva’s promoter.
The newly introduced section 29(A) in the Insolvency and Bankruptcy code bars defaulting promoters from participating in the corporate insolvency resolution process (CIRP).
Numetal’s bid was rejected over concerns that Russian VTB bank -led consortium had Rewant Ruia as one of the shareholders raising concerns that the Ruias will get back the reins of Essar Steel.
On Monday, JSW Steel chairman Sajjan Jindal had said that letting those who have sold promoter stake in defaulting firms enter the bidding process is tantamount to the mockery of the law obliquely referring to the ArcelorMittal’s selling of stake in Uttam Galva.
JSW Steel was not allowed by the Committee of Creditors to bid for Essar Steel as it was not one of the parties who had originally submitted the Expression of Interest.