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BusinessNCLAT stays NCLT order on ArcelorMittal

NCLAT stays NCLT order on ArcelorMittal

Published: 7th Dec 2020 7:08 pm

New Delhi: The National Company Law Appellate Tribunal (NCLAT) has stayed the orders of Ahmedabad bench of NCLT directing ArcelorMittal India to pay around Rs 1,300 crore as IRP costs in Odisha Slurry Pipeline Infrastructure (OSPIL) for using its assets.

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Passing an interim order, a two-member bench comprising Acting Chairperson Justice B L Bhat has stayed the order passed by the National Company Law Tribunal (NCLT) over the plea filed by ArcelorMittal India. “As an ad-interim the operation of the impugned order as regards making of payment by the Appellant to ‘OSPIL’ by 15th December 2020 shall remain stayed till next date of hearing,” said NCLAT in its order passed on December 4.

The appellate tribunal has directed to list the matter on January 22, 2021 for admissions and issued notices. Earlier, NCLT had on November 10, had held that the usage charges for the use of slurry pipeline for running the OSPIL as going concern during the Corporate Insolvency Resolution Process period are IRP costs.

It had directed to make the payment of IRP costs, around Rs 1,300 crore, to OSPIL by December 15, 2020, which was challenged before the NCLAT by ArcelorMittal India.

ArcelorMittal India submitted that it has been directed to make payment of usage charges as IRP costs to an entity which had not claimed it during the Corporate Insolvency Resolution Process of ‘Essar Steel India or even thereafter’.

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