A two-member bench headed by Chairman Justice S J Mukhopadhaya asked all parties, including ArcelorMittal, to file their written submissions over their submissions by May 22.
The NCLAT would continue to hear the Essar Steel insolvency case on May 21.
Insolvency resolution proceedings of Essar Steel had commenced on August 2, 2017 after the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 was admitted by the NCLT, Ahmedabad Bench.
The Committee of Creditors (CoC) submission before a National Company Law Appellatre Tribunal (NCLAT) implied that only Rs 39,500 crore would be available for distribution among the financial creditors and operational creditors.
StanChart has approached the NCLAT alleging that the CoC had discriminated against it, as it was being offered only 1.7 per cent of its total dues from Essar Steel's resolution plan, while other financial creditors, forming part of the CoC, were getting over 85 per cent of their dues.
Despite warts and all, IBC is an improvement over the previous tools available to creditors to recover their money from defaulters.
The plea by Essar Steel Asia Holdings Ltd comes weeks after an insolvency court cleared ArcelorMittal's bid for Essar Steel, which was auctioned by lenders to recover unpaid loans.
An NCLAT bench headed by Chairman Justice S J Mukhopadhaya on April 30 directed the matter to be listed on May 7.
During the proceedings, the NCLAT bench headed by Chairman Justice S J Mukhopadhaya said that the operational creditors cannot be treated differentially.
CoC can not 'arbitrarily discriminate' between the operational creditors with claims under Rs one crore and above Rs one crore under the Insolvency & Bankruptcy Code, they said in a public notice published in newspapers.
Essar Steel, with debts of 50.78 billion rupees ($725.38 million), was among the so called dirty dozen - twelve large steel and other infrastructure companies which defaulted and were referred to India's bankruptcy court in 2017.
The bench also asked ArcelorMittal to file an affidavit before it, detailing the steps to be taken for implementation of the resolution plan of debt ridden Essar Steel.
This means that lenders may have to forgo more than the earlier estimated Rs 41,987 crore, or 92 percent of their dues
The NCLAT had on March 20 asked the resolution professional of Essar Steel to call for a fresh meeting of its CoC to reconsider distribution of Rs 42,000 crore fund.
A two-member bench headed by Justice S J Mukhopadhaya said there is no stay on the Resolution Professional of Essar Steel to disburse the funds among financial and operational creditors of the company.
As the financial year-end nears, the country’s top lenders are hopeful to see progress soon from two major worrisome accounts—Jet Airways and Essar Steel.
According to reports, PNB expects to recover about Rs 2,500 crore from Essar Steel.
NCLT order on ArcelorMittal’s resolution plan for Essar Steel highlights dependence on Essar Group’s infrastructure and seeks continued access. Also cites Wednesbury Principle to ask for a more equitable distribution to all creditors.
The matter was mentioned before a two-member bench headed by Chairman Justice S J Mukhopadhaya, which asked it to be listed after the Ahmedabad bench of the National Company Law Tribunal (NCLT) posts its full written order.
ArcelorMittal’s resolution plan for Essar Steel is set to bring the curtains down on a high profile case in the insolvency process. Who won, who lost?
ArcelorMittal's acquisition of Essar Steel is a risk for domestic steel producers, as the global giant gets a ready asset in one of the largest and fastest growing markets for steel in the world
The becnh has additionally asked the lenders to share 15 percent of the bid with operational creditors, who had earlier this week appealed to ArcelorMittal to consider their dues too.
The deadline to pronounce the over gets over on Friday
A two-member NCLAT bench, headed by Justice S J Mukhopadhaya, on Thursday observed that hearing was not concluded and final order was yet to be passed.
A two-member NCLAT bench, headed by Justice S J Mukhopadhaya, said that if the Ahmedabad bench of National Company Law Tribunal (NCLT) fails to pass an order by this deadline, it would call records and pass an order.