Ahmedabad: The Gujarat High Court on Thursday rejected the petition that was looking for its intervention to ban the debt recovery court from hearing the problem where Safe Creditors wanted to uphold the personal guarantees provided by the promoter of the Ruias controlled Essar group for Estar Steel India Ltd.
The court told the Applicant – Prashant Ruia of Essar Group – that DRT was a competent authority to hear this problem and it must be taken there.
Applicants argue that debt problems have been resolved before the National Law Tribunal Law, Ahmedabad where the process of resurrection of the Company begins towards the essay steel which is full of debt.
Corporate Resolution ArcelorMittal India Plan Plan PVT Ltd.
for steel companies received by the Creditors Committee led by the State of India (SBI), with the majority needed, and approved by NCLT.
The financial package offered by ArcelorMittal to lenders, including SBI, is by 42,000 crore Rs songs.
“The court must try and decide whether, with debt assignments by safe creditors (SBI) to the Applicant Resolution (Arcelorormittal), all other liabilities and the obligation of Writ applicants as the guarantor stands,” the court was observed in the order.
Creditors Essar Steel who were secured earlier approached DRT and seeking personal guarantee enforcement provided by the company’s debtor.
The promoter of the Essar group faned the move and challenged him in the High Court, who referred him back to DRT on Thursday.
“We let it open to the applicant to submit appropriate applications before DRT to cause parties in the main process.
If such applications are submitted, they must be decided according to the law with their own abilities,” according to the court order.