ArcelorMittal drags Essar to court over Hazira port

ArcelorMittal Nippon Steel India Ltd (AMNSIL) has filed a petition in the Gujarat High Court against the Government of Gujarat and Essar Bulk Terminal Ltd seeking transfer of Hazira port licence in its name.

Within days of acquiring Essar Steel under an insolvency process, AMNSIL had made an application to the Gujarat Maritime Board requesting that the licence be transferred to them.

While the government is yet to decide on the matter, the firm has approached the court stating that the Essar Bulk Terminal Ltd (EBTL) holds captive licence as a nominee or trustee, according to the petition filed under Article 226.

ArcelorMittal did not respond to email and phone calls made for comments.

Essar Steel owns a 10 million tonnes per annum steel plant at Hazira in Gujarat, which is serviced by a captive jetty constructed at port.

"The petitioner is seeking the reversion of the captive jetty licenses," AMNSIL said in its petition, claiming it was a captive user of the jetty and intended beneficiary under all the licences and expansions.

"EBTL is not an independent licensee... but merely a 'nominee' and 'trustee', holding the two licences on behalf of and in trust for petitioner's exclusive use and benefit," it said adding Essar Steel has ceased to be same group companies and therefore EBTL no longer stands eligible and does not possess any right as a license holder of the captive jetty.

Essar Bulk Terminal Limited has denied this stating that it is an independent company and there exists no nominee or trustee relationship between the companies.

In the Supreme Court approved resolution plan submitted by ArcelorMittal for Essar Steel under the Insolvency and Bankruptcy Code, ArcelorMittal had asked for directions to be given to the Gujarat Maritime Board and Essar Bulk Terminal Ltd asking them to continue the port services at Hazira on the same terms and conditions.