Supreme Court Dismisses Essar’s Appeals against HC Order

Financial Express reported that Supreme Court has dismissed Essar House & Essar Services appeals against HC order on INR 82 crore dues to AMNS India. A bench led by Justice Indira Banerjee said that “We find no infirmity in the well-reasoned judgment and order of the division bench. The appeals are, accordingly, dismissed.”In April 2016, Essar House had entered into a rental agreement with Essar Steel to rent out a property in Mumbai’s Mahalaxmi area for which Essar Steel had paid INR25.80 crore as interest-free refundable security deposit. Essar Services and Essar Steel mutually reconciled their accounts in March 2018, acknowledging thatINR 47.41 crore was paid to Essar Services as security deposit and INR 23.21 crore was payable by Essar Steel to Essar Services for providing accounting and other services. Essar House had in November 2019 asked AMNS India to vacate its premises pursuant to the takeover of Essar Steel. After handing over the possession of the premises AMNS India had called upon Essar House to refund the interest-free security deposit of around INR 35.52 crore. However, Essar House had refused, saying no security deposit was left to be refunded to AMNS India as it had taken over loan of INR 26 crore due from Essar Steel to Marvel Mines and had adjusted the same against the security deposit kept by Essar Steel. When the Essar Group entities failed to return the deposit, ArcelorMittal decided to invoke arbitration and had approached the HC to secure the amount till the tribunal decided the dispute.Bombay High Court’s order had asked Essar House and Essar Services to collectively deposit over INR 82 crore, INR 47.41 crore & INR 35.5 crore respectively, towards security deposit that they allegedly owed to ArcelorMittal Nippon Steel India. The security amount was to be refunded to ArcelorMittal after it had vacated and handed over peacefully the premises in Mumbai’s Mahalaxmi area which was occupied by Essar Steel prior to its takeover by the former.

Supreme Court Dismisses Essar’s Appeals against HC Order

Related Stories