ArcelorMittal Moves SC Against Part Of National Company Law Appellate Tribunal Order In Essar Steel Insolvency Case

ArcelorMittal has moved the Supreme Court against a part of the order of the National Company Law Appellate Tribunal (NCLAT) in the Essar Steel insolvency case.

The appellate tribunal had ruled that the Rs 3,495 crore profit, generated during the corporate insolvency resolution process, cannot be given to ArcelorMittal.

The NCLAT had held that the profit should be distributed among all the financial and operational creditors on a pro-rata basis of their claims.

On July 4, the NCLAT had ruled that if ArcelorMittal did not pay total dues to financial creditors or operational creditors, but pays only a lesser amount than the claim, then the profit should be distributed among all creditors.

It had directed that after the distribution of Rs 42,000 crore, if any amount is found to have been generated as profit during the CIRP after due verification by the auditors, it should be distributed among all the creditors on a pro-rata basis of their claims.

However, the amount should not exceed the admitted claim, the NCLAT had ruled.

Earlier, the State Bank of India-led committee of creditors of the insolvent Essar Steel had moved the Supreme Court against the NCLAT’s order which had reduced their share of sale proceeds and also put financial creditors as well as operational creditors at par in the settlement of claims.

The petition will come up for hearing on July 22.