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
Infrastructure Urban

Designing Tomorrow: Amaravati’s Net Zero Landmark

Amaravati has achieved a defining landmark in India’s sustainable infrastructure journey with the inauguration of the APCRDA Project Office, the nation’s first government building to earn the IGBC Net Zero Energy Rating – Design Stage. Conceptualised by the Andhra Pradesh Capital Region Development Authority (APCRDA) and certified by the Indian Green Building Council (IGBC), the project exemplifies how governance, design and innovation can converge to deliver measurable environmental impact.A vision rooted in sustainabilitySet within a 4.3-acre site along the Seed Access Road in the Amar..

Next Story
Real Estate

Pidilite Elevates Construction with PPS

Pidilite Industries introduced Pidilite Professional Solutions (PPS) — a dedicated vertical for the construction and interiors ecosystem — at ACETECH Bengaluru 2025. Designed to empower architects, developers, contractors, and interior specialists, PPS delivers comprehensive support that extends far beyond products to ensure project excellence from concept to completion. Kavinder Singh, Joint Managing Director, Pidilite Industries, noted, “At Pidilite, we believe in enabling the construction fraternity to build boldly and sustainably. With Pidilite Professional Solutions (PPS),..

Next Story
Infrastructure Transport

Punjab, Centre Fast-Track Rajpura-Mohali Rail Line Development

The central government has fast-tracked the construction of the Rajpura-Mohali rail line to enhance connectivity in Punjab. This ambitious infrastructure project, aimed at improving transportation links between Rajpura and Mohali, has been identified as a key step in fostering regional economic growth. Union Minister for Railways, Ashwini Vaishnaw, announced the project’s acceleration during a recent assessment of the area. The rail line is expected to play a significant role in reducing travel time, promoting industrial growth, and boosting logistics efficiency in the region. The project,..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?