"ArcelorMittal is now giving us ₹43,000 crore, which means it is taking away ₹3,000 crore," Sibal said.
Meanwhile, senior advocate Harin P Rawal, appearing for Essar Steel Asia Holdings, a shareholder of Essar Steel, raised the issue of ineligibility of ArcelorMittal under section 29 (A) of the Insolvency & Bankruptcy Code.
According to Rawal, ArcelorMittal Chairman and CEO L N Mittal has stakes in two defaulting firms owned by his brothers as a promoter.
"Whatever be the share, the fact is that he (L N Mittal) was holding share as a promoter and hence he is ineligible under section 29 (a) of IBC," he said.
Senior advocate UK Chaudhary appearing for Prashant Ruias raised the issue of Subrogation.
According to him, Ruias who had given a personal guarantee to SBI for loans of Essar Steel, the bank cannot claim the money after lender are getting their dues.
On Monday, ArcelorMittal had told NCLAT that it would pay ₹42,000 crore, including a minimum of guarantee of ₹2,500 crore as working capital, for acquiring debt-laden Essar Steel under the insolvency process.
Senior advocate Harish Salve had contended that during the resolution period, Essar Steel had a profit of ₹3,500 crore and the company is already providing ₹2,500 crore as working capital.
"As ArcelorMittal has assured a working capital of ₹2,500 crore, a profit of ₹3,500 crore means that ArcelorMittal will make available a sum of ₹43,000 crore to the creditors of the company," Salve had said.
This story has been published from a wire agency feed without modifications to the text.
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