NCLAT chides Ruias, for intervening in Essar Steel resolution

The National Company Law Appellate Tribunal on Tuesday pulled up the Ruias for their last-minute application to reject ArcelorMittal'sRs 42,000-crore bid for Essar Steel, saying such steps were stalling the company's insolvency resolution process. “Where were you for the last so many months? Why did you not challenge or appeal against the order allowing ArcelorMittal bid? You have been present throughout the proceedings, why were you waiting to intervene at this stage?” a two judge bench led by Chairperson Justice S J Mukhopadhaya observed. The lawyer for Essar Steel Asia Holdings Limited (ESAHL), however, submitted that vetting the correctness of the plans or bids for Essar Steel was the work of the resolution professional and not the bidders. The NCLAT has agreed to hear ESAHL on Wednesday. ESAHL, which holds 72 per cent shares of Essar Steel, had approached the NCLAT last week seeking rejection of ArcelorMittal's bid for the latter, alleging that its promoter Lakshmi Narayan Mittal hid his association with loan defaulting firms run by his brothers, which made his firm ineligible to participate in insolvency proceedings.