NCLT Orders AMNS India to pay INR 1,300 Crore to SREI

NCLT Orders AMNS India to pay INR 1,300 Crore to SREI

Business Line reported that the National Company Law Tribunal has directed ArcelorMittal Nippon Steel India to pay INR 1,300 crore to SREI Infrastructure

for using the slurry pipeline during the insolvency period. Justices Madan Balachandra Gosavi and Virendra Kumar Gupta in their order said “The usage charges of slurry pipeline for running the corporate debtor Essar Steel as a going concern during Corporate Insolvency Resolution Process of the corporate debtor Are Insolvency Resolution Process cost. Such IRP costs have been duly considered and provided by the resolution applicant in the resolution plan approved by the Adjudicating Authority. The resolution applicant has contravened the provision of such approved resolution plan by not making payment of IRP costs.The resolution applicant is directed to make the payment of IRP costs to OSPIL by December 15. In case it is not complied with the applicant is directed to intimate us so that we can pass an appropriate order under Section 33(4) of the IBC Code.”

SREI Infrastructure, which owns 69 per cent in Odisha Slurry Pipeline India, had moved the NCLT, Ahmedabad claiming that ArcelorMittal had agreed to pay the entire cost to keep Essar Steel asset as going concern during the insolvency period, but did not pay for using a critical slurry pipeline.

The 253 kilometers slurry pipeline connects AM/NS India’s iron ore benefication plant in Dabuna with the 12 million tonne pellet plant at Paradip.

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