NCLAT gives go-ahead to ArcelorMittal's resolution plan for Odisha Slurry Pipeline

The National Company Law Appellate Tribunal (NCLAT) has approved ArcelorMittal India's takeover bid for Odisha Slurry Pipeline Infrastructure Ltd (OSIL), after it dismissed a batch of appeals filed against the L N Mittal-owned unit's resolution plan for the loan defaulter firm.

A two-member Bench, comprising Jarat Kumar Jain (judicial member) and Kanthi Narahari, on Tuesday approved the earlier order passed by the Cuttack Bench of the National Company Law Tribunal (NCLT), which had approved ArcelorMittal India's bid for the company.

Confirming the development, Senior Advocate Ramji Srinivasan, who had represented OSIL's Resolution Professional, told PTI: ''The NCLAT had dismissed all the appeals filed against the resolution plan.'' The appellate tribunal has passed oral orders and a detailed judgment is yet awaited.

This is a major relief of ArcelorMittal India as OSIL owns and operates a 253-km pipeline that connects iron ore mines in Dabuna, Odisha, to a pelletisation plant in Paradip.

It connects ArcelorMittal Nippon Steel India's (formerly Essar Steel) iron ore beneficiation plant in Dabuna to its pellet plant in Paradip in Odisha.

The NCLT had on March 2, 2020, approved a Rs 2,359-crore bid of ArcelorMittal India for the debt-ridden OSIL.

NCLT had observed that ArcelorMittal India's plan provides repayment of the principal dues to all financial creditors of OSPIL, which is indeed ''fair and equitable'' and has taken care of the interests of all stakeholders.

However, this was challenged by SREI Infrastructure Finance, SREI Multiple Asset Investment Trust and IDBI Bank before the appellate tribunal.

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