Two Essar firms to deposit Rs 82 cr over ArcelorMittal suit
Real Estate

Two Essar firms to deposit Rs 82 cr over ArcelorMittal suit

The Bombay High Court has directed Essar House Pvt Ltd (EHPL) and Essar Services India Pvt Ltd (ESIPL), owned by the Ruias, to deposit more than Rs 82 crore in the next eight weeks in the court. This is for the two separate arbitration suits filed by ArcelorMittal Nippon Steel India Pvt Ltd.

Essar House Pvt Ltd (EHPl) had received Rs 35 crore security deposit from Essar steel. Whereas, Essar Services India Pvt Ltd (ESIPL) received Rs 47 crore security deposit.

ArcelorMittal approached the court for immediate protection before the arbitration process began. This is under Section 17 of the Arbitration and Conciliation Act 1996.

As per two separate court orders, Essar Steel entered into a rental agreement with Essar Housing. It was done to occupy the ground floor and 20 upper floors of Essar House, located in Mahalakshmi, Mumbai. ESIPL provided the management, administrative as well as accounting services to Essar Steel.

Moreover, ArcelorMittal was seeking a refundable security deposit that the company had paid to these two companies. It was payable upon termination of the contract.

However, both the companies refused to refund the money on the basis that they novated its obligation in the bilateral agreement. It was later on used to settle with their liability to make any repayment.

There was a clause of arbitration with both parties; ArcelorMittal invoked the clause and approached the high court to secure the amount.

The Bombay High Court has directed Essar House Pvt Ltd (EHPL) and Essar Services India Pvt Ltd (ESIPL), owned by the Ruias, to deposit more than Rs 82 crore in the next eight weeks in the court. This is for the two separate arbitration suits filed by ArcelorMittal Nippon Steel India Pvt Ltd. Essar House Pvt Ltd (EHPl) had received Rs 35 crore security deposit from Essar steel. Whereas, Essar Services India Pvt Ltd (ESIPL) received Rs 47 crore security deposit. ArcelorMittal approached the court for immediate protection before the arbitration process began. This is under Section 17 of the Arbitration and Conciliation Act 1996. As per two separate court orders, Essar Steel entered into a rental agreement with Essar Housing. It was done to occupy the ground floor and 20 upper floors of Essar House, located in Mahalakshmi, Mumbai. ESIPL provided the management, administrative as well as accounting services to Essar Steel. Moreover, ArcelorMittal was seeking a refundable security deposit that the company had paid to these two companies. It was payable upon termination of the contract. However, both the companies refused to refund the money on the basis that they novated its obligation in the bilateral agreement. It was later on used to settle with their liability to make any repayment. There was a clause of arbitration with both parties; ArcelorMittal invoked the clause and approached the high court to secure the amount.

Next Story
Products

Viva ACP Launches FR A1-Rated Honeycomb Panels for Fire Safety

Viva, Asia’s largest manufacturer and supplier of aluminium composite panels (ACP) introduced its FR A1-rated Honeycomb Panels, setting a new industry benchmark for fire safety and architectural excellence. Engineered to deliver exceptional performance, these panels combine advanced fire-resistance technology with aesthetic versatility, offering a revolutionary solution for safety-critical environments.The FR A1 rating represents the highest standard of fire resistance under the European Standard EN 13501-1, signifying non-combustibility and zero contribution to fire, smoke, or toxic emissio..

Next Story
Real Estate

Almal Real Estate Expands into Commercial, Global Markets

Almal Real Estate Development is soon to announce its upcoming expansion into new verticals and international markets as part of its strategic growth plans for 2030. The company, known for its innovative luxury residential and hospitality developments, is preparing to diversify into the commercial sector with the introduction of The Smart Space, a network of business centers in UAE featuring five-star amenities. Additionally, Almal is entering new markets in Bali and Thailand as a community developer, focusing on villa and townhouse projects.The expansion into the commercial real estate sector..

Next Story
Infrastructure Urban

NABARD Approves Rs 9.03 Billion for 127 Projects in Himachal

The Himachal Pradesh government has secured approval from the National Bank for Agriculture and Rural Development (NABARD) for 127 projects worth Rs 9.03 billion for the 2024-25 fiscal, Chief Minister Sukhvinder Singh Sukhu announced. During a meeting with MLAs from Kangra, Kullu, Kinnaur, Solan, Chamba, Bilaspur, and Lahaul-Spiti districts to discuss priorities for the 2025-26 budget, Sukhu said the approved projects include 50 MLA-priority schemes under the Public Works Department, valued at Rs 4.12 billion, and 23 MLA-priority schemes under the Jal Shakti Vibhag, costing Rs 1.79 billio..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?