Numetal may go in for review petition
The apex court order was a significant departure from the National Company Law Appellate Tribunal (NCLAT) order, which held Numetal�€™s bid for Essar Steel eligible and asked ArcelorMittal to cure its eligibility by paying dues worth Rs7,000 crore towards Uttam Galva and KSS Petron.
\'No question of new bid if it pays all dues\'
Russia\'s VTB-led Numetal is likely to file a review petition against the Supreme Court order asking ArcelorMittal and Numetal to pay their outstanding dues to become eligible to bid for Essar Steel.
The Supreme Court on Thursday had asked both bidders to clear their dues within two weeks to become eligible to make the bid.
The apex court order was a significant departure from the National Company Law Appellate Tribunal (NCLAT) order, which held Numetal???s bid for Essar Steel eligible and asked ArcelorMittal to cure its eligibility by paying dues worth Rs7,000 crore towards Uttam Galva and KSS Petron.
\"They [Numetal] will go for review petition as they feel that the understanding of the issue has gone somewhere wrong,??? said a source. ???If Numetal will have to clear the entire dues of ???49,000 crore of Essar Steel, it will be a Numetal company. Then, where is the question of new round of bids,\" asked the source.
Numetal eligibility
On Numetal???s eligibility, the judgment said, ???We therefore hold that, whether the first or second resolution plan is taken into account, both would clearly be hit by Section 29A(c), as the looming presence of Shri Rewant Ruia has been found all along, from the date of incorporation of Numetal till the date of submission of the second resolution plan.???
???We are going through the judgment and exploring future course of action,??? said a Numetal spokesperson. ArcelorMittal???s spokesperson declined to comment stating that the company can offer comments only after going through the full judgment.
???It???s a very good judgment that paves the way for ArcelorMittal to get its presence established in India through Essar Steel. ArcelorMittal was anyway willing to pay the dues of ???7,000 crore to the lenders of Uttam Galva and KSS Petron. The court observed that Numetal is still related to Ruias and I don???t think Numetal will pay ???49,000 crore to become eligible to bid for Essar Steel.??? Sanjiv Bhasin, executive vice president, Markets at IIFL Securities, told?The Hindu.
