Numetal was disqualified due to Rewant Ruia's exposure in Numetal. Rewant Ruia is the son of Ravi Ruia, who is promoter of
ArcelorMittal was disqualified because although it had sold shares in Uttam Galva, a non-performing asset for more than a year, before the submission of its bid for Essar Steel, it remained a promoter in the records of stock exchanges at the time of the bid. The NCLT, in its order, remanded the first round of bids to the resolution professional and the CoC for reconsideration and pointed towards the payment of overdue amount as a cure for ineligibility.
The CoC, in line with the NCLT
order, had given both Numetal and ArcelorMittal seven days to clear outstanding dues on account of defaulting firms. Numetal, however, challenged in the NCLAT
the demand to seek payment on account of Rewant Ruia's exposure in the consortium, even though it was an indirect and minority holding.
Numetal also appealed against the NCLT order suggesting a 30-day cure period for ArcelorMittal for the purpose of payment of the overdue amount, as well as its own disqualification.
ArcelorMittal has parked Rs 70 billion in an escrow account in State Bank of India.
The offer is subject to the company being declared an eligible and successful bidder by the NCLT. ArcelorMittal’s offer is on account of its links with Uttam Galva and KSS Petron. Both firms were classified non-performing assets (NPAs) for more than a year.
ArcelorMittal has also appealed against the NCLT’s observations. All the cross-appeals have been admitted in the NCLAT.
While the stay is on in Essar Steel’s resolution process, Uttam Galva, which is facing insolvency proceedings, will come up for hearing before the NCLT Mumbai Bench on June 6. Lenders were likely to seek an extension there as well, sources said.