NCLAT approves ArcelorMittal’s Resolution Plan for Odisha Slurry

The National Company Law Appellate Tribunal (NCLAT) has approved the resolution plan of ArcelorMittal for Odisha Slurry Pipeline Infrastructure Limited (OSPIL) while dismissing an appeal filed by several parties including SREI Infrastructure Finance Ltd. (SFIL) [SREI Infrastructure Finance Ltd. v. Ashish Chhawchharia & Ors.pdf]..A Bench of judicial member Jarat Kumar Jain and technical member Kanthi Narahari said that there is no infirmity in the order passed by National Company Law Tribunal (NCLT) approving the plan“The plan approved by the Committee of Creditors (COC) by a vote of 100% in its meeting and approved by the Adjudicating Authority, in toto, we do not find any infirmity or illegality in the order passed by the Adjudicating Authority approving the Resolution Plan," the NCLAT said. .The NCLT, Cuttack had initiated Corporate Insolvency Resolution Process (CIRP) against OSPIL. Out of the two resolution applicants, the resolution plan submitted by ArcelorMittal was approved with 100% votes from the CoC.SIFL, one of the financial creditors, challenged the approval granted on the ground that it was not allowed to participate in the CoC proceedings.In 2020, the NCLT approved ArcelorMittal’s resolution plan under the Insolvency & Bankruptcy Code, which then came to be challenged before the NCLAT..SIFL challenged the plan on the ground that it discriminates in the manner of distribution of recovery based on the claims raised between the similarly situated secured creditors and also with respect to unsecured creditors.However, NCLAT was not inclined to interfere with the applications and dismissed the appeals.“We do not find any contravention with regard to the rules and regulations of the I&B Code and we are also of the view that the CoC acted in the interest of all the stakeholders,” NCLAT observed in its order..Advocates Abhijeet Sinha, Vatsala Rai and Sayobani Basu appeared for SFIL.Senior Advocate Ramji Srinivasan with Advocates Deep Roy, Rony John, Piyush Swami, Dhaval Savla and Arshdeep Singh appeared for resolution professional.Senior Advocate Arun Kathpalia along with advocates Suommo Biswas, Prabh Simran Kaur, Parth Gokhale and Siddhant Kant appeared for IDBI Bank Ltd.Senior Advocate Neeraj Kaul with advocates Vishal Gehrana, Ashutosh Shukla, Deepak Joshi and Ruby Ahuja briefed by Sudhir Sharma and Naman Singh Bagga from L&L Partners appeared for ArcelorMittal..[Read order]