NCLAT order on Essar Steel bids todayhttps://indianexpress.com/article/business/companies/nclat-order-on-essar-steel-bids-today-5344086/

NCLAT order on Essar Steel bids today

NCLT, which said that inviting second round of bids without offering bidders an opportunity to rectify their first bids was “prima facie invalid”.

NCLAT order on Essar Steel bids today
The National Company Law Appellate Tribunal will on Friday deliver its order on the eligibility of ArcelorMittal and Numetal, the two key contenders, for bankrupt Essar Steel. (Representational photo)

The National Company Law Appellate Tribunal (NCLAT) will on Friday deliver its order on the eligibility of ArcelorMittal and Numetal, the two key contenders, for bankrupt Essar Steel. Both the firms had moved the appellate tribunal challenging their disqualification in the first round of bids.

ArcelorMittal’s first bid was disqualified by the resolution professional on the ground that it was a promoter of Uttam Galva and KSS Petron, both of which have defaulted on loans. Numetal’s bid was disqualified since one of the persons associated with the firm, Rewant Ruia, is related to Essar Steel promoters. Both the firms put in bids in the second round. In the second round, Vedanta Resources also joined the race and JSW Steel joined Numetal for the bid. The two firms challenged their disqualification before the Ahmedabad bench of the

NCLT, which said that inviting second round of bids without offering bidders an opportunity to rectify their first bids was “prima facie invalid”. — With inputs from FE