Delhi HC closes options to settle Rs 8,772 crore claim of IOC

11 Oct 2023 , 09:21 AM

The Delhi High Court dismissed Indian Oil Corporation’s petition for the appointment of an arbitral tribunal to settle its Rs 8,772-crore claim against Lakshmi Mittal-led ArcelorMittal Nippon Steel on Tuesday, calling the disputes ‘non-arbitrable’ and ruling that ‘no reference to arbitration tribunal (AT) is warranted.’

The claim was initially brought against bankrupt Essar Steel India, which was acquired by ArcelorMittal in December 2019 after receiving Supreme Court approval.

The ratification of the settlement plan, according to Justice Yashwant Varma, has resulted in the extinguishment of all claims that the IOC may have had, and thus the matter presently sought to be ‘canvassed cannot be permitted to be submitted again before the AT.’

‘That would amount to rewriting the clean slate on which the respondent (ArcelorMittal) took over the corporate debtor (Essar Steel),’ the judge said, adding that referring the disputes to the AT would amount to reopening the resolution plan, which is clearly impermissible in light of the finality granted by the SC.

According to Justice Varma, once the resolution process is concluded and the resolution plan is accepted, no new claims against the successful resolution applicant can be filed or enforced.

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