SC approves resolution plan of ArcelorMittal for Odisha Slurry Pipeline Infrastructure
In a significant victory for the ArcelorMittal Group, the Supreme Court of India on 10 November 2022 approved the resolution plan submitted by Arcelor Mittal India Private Limited (AMIPL) for the Corporate Insolvency resolution process of Odisha Slurry Pipeline Infrastructure Limited (OSPIL).
The verdict of the court came in a civil appeal filed by SREI Infrastructure Finance Limited (SIFL), which was the creditor and related party to OSPIL, against the judgment of National Company Law Appellate Tribunal (NCLAT) on 18 January 2022, which had also approved the resolution plan.
During the hearing before the Supreme Court, Senior Advocate Kapil Sibal, appearing for SIFL, submitted that the AMPIL’s Resolution Plan, suffers from infirmity on various grounds, including that the Resolution Plan submitted by AMIPL fails to maximise the value of the corporate debtor. Abhishek Manu Singhvi and Neeraj Kaul, lead senior counsels arguing for AMIPL opposed the challenge and submitted that the resolution plan was approved by 100% of the Committee of Creditors of OSPIL and got the due sanction of the Adjudicating Authority as mandated under the Insolvency and Bankruptcy Code, 2016.
It was also highlighted that all the financial creditors of OSPIL, including SIFL, were given 100% of their principal amount claimed and verified by the resolution professional and in fact, the said resolution plan has been in effect since July 2020 and thus, there can be no grievance whatsoever. On such submissions, the Hon’ble Supreme Court of India, dismissed SIFL’s appeal.
Notably, the decision of the Hon’ble Supreme Court passed by the Bench comprising Hon’ble Mr. Justice Ajay Rastogi, and Hon’ble Mr. Justice C.T. Ravikumar, comes after the Ld. Adjudicating Authority, Cuttack on 02.03.2020 as well as the Ld. Appellate Authority, on 18.01.2022, rendered concurrent findings approving the resolution plan of ArcelorMittal India Private Limited, pursuant to the unanimous approval by the Committee of creditors.
Abhishek Manu Singhvi, Senior Advocate and Neeraj Kishan Kaul, Senior Advocate appeared and argued on behalf of the ArcelorMittal Group.
The ArcelorMittal Group was advised and represented by a legal team from Karanjawala & Co. led by Ms. Ruby Singh Ahuja, Senior Partner, along with Vishal Gehrana, Varun Khanna, Aakriti Vohra and Ashutosh Shukla, as well as Ashim Sood and Senu Nizar from Ashim Sood Law Offices and Sanjeev Kumar, Mr. Abhishek Kisku, Anshul Sehgal and Divyanshu Jain from Luthra & Luthra Law Offices India.
Also See: Resolution Plans
