Essar Steel-ArcelorMittal case to move ahead as former directors approach NCLAT

Three directors of the erstwhile board of Essar Steel on Monday approached the National Company Law Appellate Tribunal (NCLAT) against a lower bankruptcy court order that allowed the takeover of the company by ArcelorMittal. The matter was mentioned before a two-member bench headed by Chairman Justice S J Mukhopadhaya, which asked it to be listed after the Ahmedabad bench of the National Company Law Tribunal (NCLT) posts its full written order.

The three directors of Essar Steel are - Prashant Ruia, Dilip Oommen and Rajiv Bhatnagar. Standard Chartered Bank has also approached the appellate tribunal against the order.

On Friday, the Ahmedabad bench of the NCLT had approved the lenders' plan to let global steel giant ArcelorMittal take over the debt-ridden Essar Steel. Passing an order, the tribunal had suggested that the payment of Rs 42,000 crore by ArcelorMittal be distributed among financial and operational creditors in the ration of 85:15. The detailed written order of the Ahmedabad bench is still awaited.

(With inputs from agencies.)