NCLAT to reopen hearing on Essar Steel auction

Essar Shipping | The share price has risen 62 percent in the last three trading sessions. On August 12, the stock closed at Rs 11.64 against a close of Rs 7.19 on August 7, 2020.

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26 Aug, 2025 12:21

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Putting the Essar Steel auction back into action, the National Company Law Appellate Tribunal has called for hearing on Wednesday and Thursday.

The Tribunal took the decision to call for hearings from listening to a petition by Essar Steel lenders who had sought early hearing on petitions by Numetal and ArcelorMittal, who had bid for the stressed steelmaker.

The NCLAT on May 22 had put the auction on hold, and had slotted the next hearing only for July. The hearings were on petitions filed by Numetal and ArcelorMittal over their eligibility to bid.

But the lenders argued that the delay in the hearing was costing them money. Leader lender State Bank of India had pointed out that Essar Steel had an outstanding debt of Rs 52,569 crore. And since the insolvency process began, another Rs 5,100 crore of of interest has accrued on the debt.

The Tribunal will now hear arguments from Numetal, ArcelorMittal and the lenders during the hearings on Wednesday and Thursday. The Tribunal will then close for a month on a summer break and reopen on July 1.

ArcelorMittal had presently argued that bids in the first round should be considered. The world's largest steelmaker had transferred Rs 7,000 crore into an escrow account of SBI to show its intent in clearing the eligibility hurdle.