NCLAT okays Numetal's Essar Steel bid, directs ArcelorMittal to clear dues

NCLAT directed ArcelorMittal to clear its dues on account of defaulting firms by September 11 to be an eligible bidder

The National Company Law Appellate Tribunal (NCLAT) ruled on Friday that Numetal's second bid to acquire debt-laden Essar Steel was valid and directed ArcelorMittal to clear its dues on account of defaulting firms by September 11 to be an eligible bidder, in what appears to be a blow to the LN Mittal-led company.

The appellate tribunal said ArcelorMittal India had made a conditional deposit of Rs 70 billion in its own current account (escrow account), which did not qualify as a payment of the due amount. An offer to repay the debt could not be accepted till it complied with