The NCLAT Thursday cleared the takeover of Essar Steel by ArcelorMittal after it rejected all objections raised by the shareholders of the debt-ridden company.
The National Company Law Appellate Tribunal (NCLAT), however, gave operational creditors equal footing into the proceeds of insolvency auction.
The two-member NCLAT bench, headed by Chairman Justice S J Mukhopadhyaya, rejected Essar Steel Director Prashant Ruia’s contention that ArcelorMittal was ineligible to bid under insolvency and bankruptcy law because of allegedly holding shares loan defaulting companies.
The NCLAT had earlier reserved its order over a batch of petitions against ArcelorMittal’s Rs42,000-crore takeover bid for Essar Steel as well as the distribution of funds among the creditors of the debt-ridden company.