SC dismisses plea to stay Essar Steel proceedings

NEW DELHI: The Supreme Court (SC) on Monday dismissed petitions by Essar Steel Ltd’s operational creditors seeking a stay on its insolvency proceedings.

The matter will thus continue to be heard by the Ahmedabad bench of the National Company Law Tribunal (NCLT). The National Company Law Appellate Tribunal (NCLAT) has issued two orders, first on January 23 and again on February 4, asking NCLT’S Ahmedabad bench to pass by February 11 an order on the Essar Steel insolvency case.

Solicitor general Tushar Mehta, appearing for Indian Oil Corp. Ltd (IOC), one of the operational creditors, on Monday said that the company would need more time to argue before the National Company Law Tribunal. Kamaljeet Singh Ahluwalia, another operational creditor, sought the setting aside of these orders on the grounds that they were against settled legal propositions and the principles of natural justice.

According to the petitioner, the NCLAT erred in passing these orders and dictating the procedure to the NCLT in conducting a matter, which is contrary and beyond its jurisdiction. On February 4, a two-member NCLAT bench said only after the matter had been heard at the NCLT, Ahmedabad, would the appellate tribunal hear it on February 12.