NCLAT hears ArcelorMittal plea on eligibility for Essar Steel
Mint reported that ArcelorMittal India Ltd. was eligible to submit a bid for Essar Steel on the date of application as the company was till then no longer associated with Uttam Galva Steels Ltd, said lawyer Abhishek Manu Singhvi, appearing for ArcelorMittal on Monday. The National Company Law Appellate Tribunal (NCLAT) was hearing arguments made by Singhvi challenging the disqualification of ArcelorMittal’s bid by the insolvency resolution professional of Essar Steel Ltd.
ArcelorMittal, in its petition, had challenged its disqualification on the grounds that it had exited Uttam Galva before submitting a bid for Essar Steel on 12 February.
During the hearing of the cross petitions filed by the two disqualified bidders, a two-judge NCLAT bench headed by justice S.J. Mukhopadhyay said: “We’ll look at the disqualification from every aspect… Both of you (Arcelor Mittal and Numetal) have been ineligible, maybe both are ineligible or both eligible or any one is eligible.”
According to Singhvi, Arcelor Mittal was holding 29% shares of Uttam Galva and it was “never involved in management” or “never appointed any director” of Galva.
He said its parent, ArcelorMittal Netherlands BV, had sold off the shares of Uttam Galva five days prior to submission of bids for Essar Steel. However, the sale of shares was reflected in the stock exchange after submission of bids. “It is not in my hands if the stock exchange takes two weeks to reflect it,” said Singhvi during his arguments.
Source : Mint