SC allows ArcelorMittal, NuMetal to bid for Essar Steel once dues cleared

The Supreme Court on Thursday gave two weeks time to NuMetal and ArcelorMittal to clear their corporate dues and become eligible to bid for the insolvency-hit Essar Steel.

A bench of Justice Rohinton Fali Nariman and Justice Indu Malhotra said the two companies should submit their resolution plan for acquiring Essar Steel that was facing insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) once they cleared their corporate outstandings.

Justice Nariman said that if the Committee of Creditors did not find any of the resolution plan acceptable, the Essar Steel would go for liquidation.

The Committee of Creditors comprising of lender banks and financial institutions were required to reach a majority decision of 66 per cent.

The court also clarified that none of the adjudicating authorities would interfere while the resolution plan was under process.