ArcelorMittal to take over debt-ridden Essar Steel
Written by: ForumIASPosted on Last modified on Comments
The National Company Law Tribunal (NCLT) has approved the bid of Arcelor-Mittal for the takeover of debt-ridden Essar Steel.
The approval comes after the National Company Law Appellate Tribunal (NCLAT) had directed NCLT to take a decision on ArcelorMittal’s offer for Essar Steel plant by 8 March,2019.
Under Insolvency and Bankruptcy Code(IBC),National Company Law Tribunal (NCLT) has been notified as the adjudicating authority for the corporate insolvency and bankruptcy cases.
National Company Law Tribunal (NCLT) is a quasi-judicial body that governs the companies in India.It was established under the Companies Act, 2013 and is a successor body of the Company Law Board.
NCLT has the same powers as assigned to the (a)erstwhile Company Law Board (which are mostly related to dealing with oppression and mismanagement) (b)Board for Industrial and Financial Reconstruction (BIFR)(revival of sick companies) and (c)powers related to winding up of companies (which was available only with the High Courts).
National Company Law Appellate Tribunal (NCLAT) was also constituted under Companies Act, 2013 for hearing appeals against the orders of (a) National Company Law Tribunal(s) (NCLT) (b)Insolvency and Bankruptcy Board of India and (c)Competition Commission of India (CCI).