8 March 2019: The Ahmedabad bench of the National Company Law Tribunal (NCLT) has rejected Karur Vysya Bank’s plea to quash Rs 42,000-crore resolution plan of ArcelorMittal for distressed Essar Steel on Thursday.
Rejecting the plea the two-member bench comprising Harihar Prakash Chaturvedi and Manorama Kumari stated that Karur Vysya Bank (KVB) had missed the deadline set by Supreme Court to stake its claim and KVB was not the financial creditor of Essar Steel.
On October 19, 2018, KVB had filed its claim before resolution professional of KSS Petron for Rs 3 crore in dues in which ArcelorMittal was a related party. However, the apex court had set the deadline of October 18, 2018, in its order given on October 4, 2018.
Based on it, NCLT said KVB was late in submitting its claim and hence couldn’t claim eligibility as a financial creditor. “The bench is bound by the deadline set by the Supreme Court and cannot reverse the clock for KVB,” the two-member bench noted.