In a major relief to ArcelorMittal India, the National Company Law Appellate Tribunal (NCLAT) has dismissed various appeals challenging the approval of the resolution plan filed by the company for the corporate insolvency resolution process of Odisha Slurry Pipeline Infrastructure Ltd (OSPIL).
The Bench comprising of HMJ Jarat Kumar Jain (Member Judicial) and Kanthi Narahari (Member Technical) approved the plan in an oral order on Tuesday.
OSPIL owns and operates a 253-km slurry pipeline, which is a critical asset for ArcelorMIttal Nippon Steel (AMNS) India . It connects AMNS India’s iron ore beneficiation plant in Dabuna with the 12-million tonne pellet plant in Paradip. It was leased to Essar and the arrangement captured in the right to use agreement.
Resolution plan
However, OSPIL landed up in National Company Law Appellate Tribunal (NCLT) and ArcelorMittal submitted a ₹2,359 crore resolution plan, which was approved by the Cuttack Bench of the NCLT earlier this year.
Srei Infra challenged it in NCLAT. Incidentally, India Growth Opportunities Fund, a scheme of Srei Multiple Asset Investment Trust, held a 69 per cent equity in OSPIL while the balance was with Essar Steel.
According to Srei, if the payments were made in a timely manner, OSPIL would have serviced its debts due to its lenders and there would have been no occasion for it to be taken for insolvency as the lenders/shareholders of OSPIL would not have suffered any losses.
ArcelorMittal Group was represented by Senior Advocates Harish N. Salve and Neeraj Kishan Kaul.