The Ahmedabad Bench of the NCLT on Tuesday reserved its order on a plea by MSTC Ltd and asked the company to make a written submission by Thursday.
State-run MSTC had sought protection from the NCLT over its commercial deal with the Insolvency Resolution Professional (IRP) to meet the operational requirements for running Essar Steel’s plant during the interim period of its resolution process.
MSTC’s counsel claimed that according to its contract with the suspended management of ESIL, it was identified to purchase critical raw material directly from sellers abroad. The counsel said the company continued to provide this facility to the IRP in “good faith” to help keep the plant running. The counsel sought a firm commitment on the quantity that was sourced for the plant “in good faith” be lifted post decision by the tribunal irrespective of the approval or rejection of the resolution plan.