The war of words between ArcelorMittal and JSW Steel intensified with the latter claiming that ArcelorMittal was questioning the wisdom of Resolution Professionals and the entire IBC under which JSW’s eligibility to bid for Monnet Ispat was confirmed.

Reacting to ArcelorMittal tweet on Wednesday terming the selection of JSW Steel as winning bidder for Monnet Ispat as mockery, Seshagiri Rao, Joint Managing Director, JSW Steel, told BusinessLine that the company's eligibility has been tested and approved by the resolution professionals of two bankrupt companies Bhushan Steel and Monnet Ispat.

Whereas, he added, ArcelorMittal bid for Essar Steel has been rejected in the first round and is fighting a legal battle to prove its eligibility.

ArcelorMittal is trying to take out its frustration without getting its facts right and relying on some old data which has been clarified by JSW when the IBC was first made a law last year, he said.

A source close to ArcelorMittal said the main issue is about the need for consistency in how the IBC is applied. ArcelorMittal strongly believes that if JSW is eligible to bid for Monnet Ispat then ArcelorMittal should also be eligible to bid for Essar Steel,the source added.

Rao said JSW’s case is not similar to that of ArcelorMittal because neither has JSW Steel promoter invested in Monnet Ispat nor Monnet Ispat has any investment in JSW.

In the case of ArcelorMittal, Rao said its promoter has not only invested in bankrupt Uttam Galva but also signed agreement with banks as sponsor for Uttam Galva's loan.

However, a judgment on ArcelorMittal eligibility is expected to be pronounced by NCLT on Monday, said Rao.

Related Topics
comment COMMENT NOW