The National Company Law Appellate Tribunal (NCLAT) today ordered a status quo on insolvency of Essar Steel for two months as it admitted petitions of NuMetal and ArcelorMittal over the bidding eligibility.
The NCLAT today directed the resolution professional (RP), committee of creditors (CoC) and the NCLT not to pass any order in the ongoing insolvency process of Essar Steel, including liquidation of the debt-ridden firm till its further order.
The appellate tribunal admitted the cross petitions filed by two resolution applicants -- Russia's VTB Capital-based NuMetal and ArcelorMittal -- challenging their disqualification for Essar Steel.
"Appeals admitted. List for hearing on July 23," said an NCLAT bench headed by Chairman Justice S J Mukhopadhaya.
It further said, "Until further order, RP, CoC and adjudicating authority (NCLT) will not pass any order including order of liquidation of corporate debtor."
He further said ArcelorMittal has not paid "Rs 7,000 crore but kept into an escrow account. They have kept it there ... if they are (ArcelorMittal) successful bidder, then they would pay. "