Kamlaljeet Singh Ahluwalia, an operational creditor of Essar Steel, moved the Supreme Court on Wednesday challenging two orders of the National Company Law Appellate Tribunal (NCLAT) directing the Ahmedabad bench of the National Company Law Tribunal (NCLT) to pass an order on the insolvency case filed against it by 11 February.
The orders in question passed by the appellate tribunal are of 23 January and 4 February were issued in the Essar Steel insolvency case. The matter is likely to be mentioned before a bench headed by Chief Justice Ranjan Gogoi on Thursday.
The plea sought setting aside of the orders as it claims them to be contrary to the settled legal propositions and against the principles of natural justice. According to the petitioner, the NCLAT erred in passing the impugned orders and dictating the procedure to the NCLT in conducting a matter, which is contrary and beyond its scope of jurisdiction.
“The appellate authority while exercising powers under Section 61 of the Insolvency and Bankruptcy Code, 2016, cannot assume supervisory jurisdiction over the adjudicating authorities and issue directions dictating the procedure to conduct the hearing of applications before the adjudicating authority,” the petition said.
On 4 February, a two-member NCLAT bench headed by its chairperson Justice S.J. Mukhopadhaya said only after the matter had been heard at NCLT, Ahmedabad, would the appellate tribunal hear it on 12 February.
The NCLAT’s directive was issued while it was hearing a petition filed by the committee of creditors (CoC) of Essar Steel, through State Bank of India, against resolution professional Satish Kumar Gupta and others.
The appellate tribunal had also asked the operational creditors to choose one representative as the bench will not hear all of them individually.
The Ahmedabad bankruptcy court had turned down the bid by Essar Steel Asia Holdings Ltd (ESAHL) to regain control over the debt-laden Essar Steel, which came as a setback to the promoter Ruia family.
The Ruias have been seeking withdrawal of the petition under Section 12A of the Insolvency and Bankruptcy Code (IBC) that allows it, subject to approval by 90% of the creditors and the NCLT. Their offer was made on a day when more than 92% of creditors to Essar Steel voted in favour of handing over the company to ArcelorMittal Netherlands BV.
The Ruia family-backed ESAHL holds 72% of shares in Essar Steel. The NCLT decision paves the way for ArcelorMittal to move closer to its plans for acquiring Essar Steel.
Source: Mint