The National Company Law Appellate Tribunal (NCLAT) on Wednesday directed the Ahmedabad bench of NCLT to pass an order on the insolvency resolution plan submitted by Essar Steel's RP, in which ArcelorMittal emerged as the highest bidder.

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A two-member bench of NCLAT, headed by Justice S J Mukhopadhaya, said that if the Ahmedabad bench of National Company Law Tribunal (NCLT) does not pass any order by January 31, then it would call the matter and pass an order accordingly on the next date of hearing.

The appellate tribunal has directed to list the matter on February 4 for next hearing.

We allow designated authority (NCLT) to pass appropriate orders by next date, failing which this appellate tribunal will decide, said NCLAT.

Essar Steel on Wednesday said the proposal made by their shareholders provides for a payment of Rs 54,389 crore to various creditors and all classes of creditors will receive full recovery of their claims.

"Essar Steel Asia Holding Ltd's (ESAHL) proposal exceeded the resolution plan that is currently approved by creditors by more than Rs 12,000 crore and the proposal was submitted under the recently introduced Section 12A of the Insolvency and the Bankruptcy Code (IBC)," the company said in a statement.

The matter is listed before the Ahmedabad bench of NCLT on January 31 for hearing.

The appellate tribunal was hearing an application filed by the Committee of Creditors (CoC) seeking an early decision. Essar said that no request was received from the CoC regarding any further information needed.

"There is no requirement to provide any details to a resolution applicant. It was surprising to note the comments made by a resolution applicant regarding them not having received details of the proposal. Creditors of Essar Steel, including operational creditors, should not be forced to accept a resolution plan which undervalues the company and its assets, " the company added.

Earlier on January 3, NCLAT had asked the Ahmedabad bench of NCLT to expeditiously take a final decision in the Essar Steel insolvency case, where ArcelorMittal emerged as the highest bidder.

It had asked the NCLT bench to take an early decision in the matter as per the order passed by the Supreme Court in this regard.

(The Essar Steel statement has been added by the CNBC-TV18 Web Desk Team)

First Published:Jan 23, 2019 11:52 AM IST