- NCLT order Arcelor Mittal to pay Rs 1,300 crores to SREI infrastructure
Arcelor Mittal had been using the slurry pipeline of SREI during the insolvency period. ArcelorMittal along with Japanese company Nippon Steel had jointly bid for Essar Steel and paid ₹42,000 crore last December to complete the deal through ArcelorMittal Nippon Steel India (AM/NS). However, SREI Infrastructure, which owns 69 per cent in Odisha Slurry Pipeline India, moved the NCLT, Ahmedabad claiming that ArcelorMittal had agreed to pay the entire cost to keep Essar Steel asset as going concern during the insolvency period, but did not pay for using a critical slurry pipeline. The 253-km slurry pipeline connected AM/NS India’s iron ore benefication plant in Dabuna with the 12 million tonne pellet plant at Paradip. The NCLT further went onto hold that usage charges of slurry pipeline for running the corporate debtor as a going concern during CIRP of the corporate debtor are insolvency resolution process cost.
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- NCLAT upholds NCLT order to initiate insolvency against Meenakshi Energy
The National Company Law Appellate Tribunal (NCLAT) on Thursday upheld the orders of the NCLT directing to initiate insolvency proceedings against Meenakshi Energy Ltd. A three-member bench has dismissed the plea filed by its director and its shareholder India Power Corporation Ltd observing that the company had committed default.
Moreover, the NCLAT also rejected the contentions that its financial creditor SBI cannot move the NCLT after invoking the pledged shares of the company and virtually owning 95.2 per cent shares of Meenakshi Energy. The petitioners had maintained that SBI after being a majority shareholder of the company cannot maintain this application as a financial creditor. SBI CAP Trustee Company had invoked pledged shares of Meenakshi Energy by the India Power Corporation on December 20, 2017.
In addition to this, the petitioners had also contended that SBI had moved its insolvency plea before the NCLT following a RBI Circular of February 12, 2018, and the Supreme Court had struck it down declaring the circular as ultra vires. Earlier, the Hyderabad bench of the National Company Law Tribunal (NCLT) had in November 7, 2019 allowed the plea filed by SBI to initiate insolvency proceedings against Meenakshi Energy.
