Skip to content 
Search

Latest Stories

Ready to Pay Dues If Essar Steel Bid Accepted: ArcelorMittal to India’s Top Court

Multinational steel business giant, ArcelorMittal told India’s top court, supreme court that it would lift the escrow on £744.85 million and ready to pay the money of Uttam Galva and KSS Petron in which LN Mittal is classified as a promoter, if it permitted to bid with success for Essar Steel.

Senior advocate, Harish Salve told the Supreme Court bench on Thursday that the ArcelorMittal will pay the sum if the bid for Essar Steel is accepted.


Last week, the National Company Law Appellate Tribunal (NCLAT) had ruled that ArcelorMittal's second bid for Essar Steel would be eligible only if it takes necessary steps to repay all dues of the two companies.

In a response to the NCLAT ruling, ArcelorMittal filed a petition before the supreme court, stressing that no bank had ever made a claim against it and its promoters had given no personal assurance for any company.

According to a report published on India’s business daily, The Economic Times, senior advocate Harish Salve before the supreme court bench consisting of Justices RF Nariman and Indu Malhotra told, Arcelor had “deep pockets" and “had made provisions for the money.” "But we can't pay for them (Uttam Galva, KSS Petron) under the law. It will immediately become taxable income in the hands of the company if I pay without any consideration.”

"We have to arrive at a structure. You say pay - we will. But it is not as easy as that. Sufficient provision (for payment of debt) should be treated on par with payment. These are listed companies. There are regulatory hurdles in payment," the newspaper quoted Salve as saying.

In an argument, Salve also noted and criticised Numetal's rival bid for Essar Steel, which obtained the NCLAT's green signal for bidding. He said the company had at least £4.78 billion in the form of non-performing assets last year. The sum that would have moved up when we add interest rate also.

Salve also highlighted saying, ArcelorMittal's bid was far more than Numetal's. He also blamed that it was a way to permit the past promoters (Ruias) circle back in an opaque fashion. However, the lawyer noted that his client, Arcelor didn’t oppose the offer made by another corporate giant- Vedanta.

Earlier, Essar Steel’s lenders rejected the Numetal’s first bid as 25 per cent share owned by Rewant Ruja, the son of Essar Steel fonder Ravi Ruia, since he was considered as a related party. India’s Insolvency and Bankruptcy Code (IBC) doesn't permits the involvement of the persons in bidding who connected to businesses which have defaulted on debt. JSW Steel bought out this disputatious share before second round of bidding for Essar Steel.

Eassar Steel’s Committee of Creditors are awaiting the supreme court’s judgement as ArcelorMittal is its bid sum of £ 4.46bn followed by Numetal’s £3.93 bn and Vedanta’s bid in between £3.19 and £3.72bn.

Salve has also pointed number of loopholes in Indian insolvency law and asked the judges bench to block them immediately. Justice Nariman agreed, saying, "The process is wrong from the top to bottom.”

The Essar Steel, which has the third highest debt pile around £5.21bn among the first 12 companies identified by India’s central bank Reserve Bank of India (RBI) for insolvency proceedings.

More For You

Bangladesh seeks US deal to shield garment industry from tariffs

Workers are engaged at their sewing stations in a garment factory in Savar, on the outskirts of Dhaka, on April 9, 2025. (Photo by MUNIR UZ ZAMAN/AFP via Getty Images)

Bangladesh seeks US deal to shield garment industry from tariffs

BANGLADESH, the world's second-biggest garment manufacturer, aims to strike a trade deal with the US before Donald Trump's punishing tariffs kick in next week, said the country's top commerce official.

Dhaka is proposing to buy Boeing planes and boost imports of US wheat, cotton and oil in a bid to reduce the trade deficit, which Trump used as the reason for imposing painful levies in his "Liberation Day" announcement.

Keep ReadingShow less
UK business district
The Canary Wharf business district including global financial institutions in London.
Getty Images

Bond yields ease following Starmer’s support for Reeves

THE COST of UK government borrowing fell on Thursday, partially reversing the rise seen after Chancellor Rachel Reeves became emotional during Prime Minister’s Questions.

The yield on 10-year government bonds dropped to 4.55 per cent, down from 4.61 per cent the previous day. The pound also recovered slightly to $1.3668 (around £1.00), though it did not regain all its earlier losses.

Keep ReadingShow less
modi-trump-getty
Modi shakes hands with Trump before a meeting at Hyderabad House in New Delhi on February 25, 2020. (Photo: Getty Images)
Getty Images

Indian exporters watch closely as Trump says trade deal with India likely

THE US could reach a trade deal with India that would help American companies compete more easily in the Indian market and reduce tariff rates, President Donald Trump said on Tuesday. However, he cast doubt on a similar deal with Japan.

Speaking to reporters on Air Force One, Trump said he believed India was ready to lower trade barriers, potentially paving the way for an agreement that would avoid the 26 per cent tariff rate he had announced on April 2 and paused until July 9.

Keep ReadingShow less
Kolhapuri sandal sales surge in India post Prada controversy

Customers shop for 'Kolhapuri' sandals, an Indian ethnic footwear, at a store in New Delhi, India, June 27, 2025. REUTERS/Adnan Abidi

Kolhapuri sandal sales surge in India post Prada controversy

INDIAN footwear sellers and artisans are tapping into nationalist pride stoked by the Prada 'sandal scandal' in a bid to boost sales of ethnic slippers with history dating back to the 12th century, raising hopes of reviving a struggling craft.

Sales are surging over the past week for the 'Kolhapuri' sandals that have garnered global attention after Prada sparked a controversy by showcasing similar designs in Milan, without initially crediting the footwear's origins.

Keep ReadingShow less
UK business district
The Canary Wharf business district including global financial institutions in London.
Getty Images

Economy grew 0.7 per cent in Q1 2025, fastest in a year

THE UK economy expanded at its fastest pace in a year during the first quarter of 2025, driven by a rise in home purchases ahead of a tax deadline and higher manufacturing output before the introduction of new US import tariffs.

Gross domestic product rose by 0.7 per cent in the January-to-March period, the Office for National Statistics (ONS) said, confirming its earlier estimate. This was the strongest quarterly growth since the first quarter of 2024.

Keep ReadingShow less