Russian VTB Bank-led consortium Numetal on Wednesday filed a petition in the Supreme Court challenging the National Company Law Appellate Tribunal (NCLAT) judgment giving three days time to ArcelorMittal to settle the default of Uttam Galva and KSS Petron to qualify for Essar Steel bidding.
IBC provisions
There is no such provision under the Insolvency and Bankruptcy Code which allows three days’ time to clear dues by defaulting bidders to become a qualified bidder, said sources.
In its verdict last Friday, NCLAT has told Arcelor Mittal is ineligible under Sec 29A of the IBC code, to bid for ESIL on account of defaults by Uttam Galva and KSS Petron where ArcelorMittal and Lakshmi Mittal were passive investors.
However, while NCLAT held that mere sale of stake in Uttam Galva and KSS Petron will not remove the stigma, it permitted the Committee of Creditors to consider ArcelorMittal bid if it makes full payment of all the dues of Uttam Galva and KSS Petron, along with interest and other dues, till September 11.
Instead of paying the dues, ArcelorMittal moved to the SC against NCLAT order.