The National Company Law Appellate Tribunal (NCLAT) asked the NCLT‘s Ahmedabad bench to decide over the pending resolution plan by ArcelorMittal for debt ridden Essar Steel of ₹42,000 Crore. The court in its judgement has given directive to the Ahmedabad bench to take a judgement by March 8 or it will call records and deliver its judgement.
“Adjudicating authority (NCLT) has to pass final order by March 8, failing which this appellate tribunal may call all records including resolution plan approved by committee of creditors (CoC),” said two member NCLAT bench, headed by Justice headed by Justice S J Mukhopadhaya.
The judgement of the appellate tribunal comes in the backdrop of a pending case regarding debt resolution plan submitted by ArcelorMittal to take over the Essar Steel. The plan was approved by CoC, but is still awaiting for NCLT nod.
Earlier on January 29, NCLT rejected a debt settlement proposal by Essar stating that it goes against the section12A of Insolvency and Bankruptcy Code(IBC). In its judgement NCLT said that the ₹54,389 Crore offer by the Essar Steel is much higher than the ArcelorMittal’s bid of ₹42,000 Crore for a debt resolution. This is not maintainable in the purview Section12A of IBC, 2016.