NCLAT stays order which directed ArcelorMittal India to pay CIRP cost of Rs 1300 Cr

NCLAT stays order which directed ArcelorMittal India to pay CIRP cost of Rs 1300 Cr

Stay to remain in force till 22 January, 2021 – the next date of hearing

The National Company Law Appellate Tribunal has directed that asad-interim the operation of the impugned order as regards making of payment of Rs 1,300 crore as CIRP cost by the Appellant (ArcelorMittal India Pvt. Ltd.) to OSPIL(Odisha Slurry Pipeline Infrastructure) by 15 December, 2020, shall remain stayed till next date of hearing. The matter has now been listed for admission (after notice) on 22 January, 2021.

Herein, the National Company Law Tribunal, Ahmedabad Bench had directed ArcelorMittal India, to pay CIRP cost which was almost around Rs 1,300 crores to Odisha Slurry Pipeline Infrastructure for the use of subject slurry pipeline for running the Corporate Debtor as going concern during CIRP period of the Corporate Debtor.

Before the Hon'ble NCLAT, this aforementioned order passed by the Adjudicating Authority (National Company Law Tribunal), Ahmedabad Bench Court No.1 holding that the usage charges for the use of slurry pipeline for running the Corporate Debtor as going concern during the Corporate Insolvency Resolution Process period of the Corporate Debtor are IRP costs and directing the Appellant to make the payment of IRP costs to 'OSPIL' by 15 December, 2020, was assailed as being absurd.

Harish Salve, learned senior counsel representing the appellant, submitted that in terms of the impugned order the Appellant has been directed to make payment of aforesaid charges as IRP costs to an entity which had not claimed it during the Corporate Insolvency Resolution Process of Essar Steel India Limited 'ESIL' or even thereafter. Reference in this regard had been made to the submissions of the Resolution Professional before the Adjudicating Authority.

The Hon'ble NCLAT has directed that the Respondents (SREI Infrastructure Finance Ltd. &Ors.) may file their reply affidavits within two weeks. Rejoinder thereto, if any, may be filed by the Appellant within two weeks thereof.