NCLT Refuses ARC Petition against Indian Steel Corporation

NCLT Refuses ARC Petition against Indian Steel Corporation

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Economic Times reported that National Company Law Tribunal has refused to admit an insolvency petition filed by India Resurgence Asset Reconstruction Company, a joint venture between Piramal Enterprises and Bain Capital, against Indian Steel Corporation, calling it defective.

Order by judges Rajasekhar VK and Ravikumar Duraisamy said “There was no document placed on record acknowledging the liability in the three-year period commencing from December 31, 2013, which would have the effect of extending the period of limitation, the period within which legal action could be initiated or a right enforced.

The petition filed by the financial creditor India Resurgence ARC is, therefore, defective to the extent indicated.”

The asset reconstruction company had approached the Mumbai bench of the NCLT, claiming that the Gujarat-based maker of cold rolled steel had failed topay INR 1,487.59 crore of debt. ARC had acquired debt in May last year from State Bank of India

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