Orissa High Court Dismisses PIL Challenging Auction To ArcelorMittal Nippon Steel Limited

In a big relief to ArcelorMittal Nippon Steel Limited (formerly Essar Steel India Ltd.), Tata Steel BSL Limited (formerly Bhushan Steel Ltd), and Bhushan Power and Steel Limited, the Division Bench comprising of  Chief Justice S. Muralidhar and  Justice C.R. Dash of the High Court of Orissa disposed of the Public Interest Litigation, challenging the auction process and issuance of Letter of Intent to these companies.

The auction process for grant of Iron Ore blocks was initiated by the Government of Odisha for Ghoraburhani-Sagasahi block, Kalamanga West block, Netrabandha-Pahar block, and the Letters of Intent in respect of these blocks were issued to Essar Steel India Limited, Bhushan Steel Limited, and Bhushan Power & Steel Limited respectively. Later, these companies went into the Corporate Insolvency Resolution Process, and under the Bankruptcy and Insolvency Code 2016, the management and control of such companies were taken over by the successful resolution applicants.

The main thrust of the argument of the Petitioner was that the three Iron Ore blocks were given to the entities, which were financially distressed, defaulted on their payments, and subsequently went into the Resolution Process on this account.

Mr. Harish N. Salve, Sr. Advocate appeared on behalf of ArcelorMittal Nippon Steel Limited (formerly Essar Steel India Ltd.) and submitted that the company was admitted to the Resolution Process on 02.08.2017 i.e., 17 months after the issuance of the Letter of Intent dated 28.03.2016. He also highlighted that at all point of times and even during the Resolution Process, the company adhered to the eligibility criteria prescribed under the Tender Documents.

After hearing the submissions made by the counsel for various parties including the Government of Odisha, the Hon'ble High Court informed the parties that the interim orders are vacated and the writ petition is disposed of in terms of a written order, which will follow.

ArcelorMittal Nippon Steel Limited (formerly Essar Steel India Ltd.) was represented before the High Court of Orissa by Mr. Harish Salve, Mr. Neeraj Kishan Kaul, Senior Advocates along with Ms. Ruby Singh Ahuja, Mr. Vishal Gehrana, Mr. Ashutosh P. Shukla, and Mr. Utkarsh Maria from Karanjawala & Co.