With ArcelorMittal paying Rs 7,469 crore to clear dues of Uttam Galva Steel and KSS Petron, the LN Mittal-led company has now emerged as the favourite to bag Essar Steel, the biggest case in India's insolvency courts.

Till now, the race was dominated by Numetal. However, the VTB Bank-led consortium hasn't yet responded to the Supreme Court order asking it to clear dues. The deadline expires on Thursday.

The banks had asked Numetal to pay about Rs 37,000 crore. This was pertaining to the dues of Essar Steel.

While Numetal has remained mum on the payment, it will be pinning hopes on the petition filed by its lead shareholder VTB Bank. The Russian bank had moved the apex court to consider it as a solo bidder for Essar Steel.

The two companies were directed by the Supreme Court to pay off the dues, to clear clause 29A of Insolvency and Bankruptcy Code, which bars promoters of defaulting companies from bidding for stressed assets.

ArcelorMittal was a significant shareholder in Uttam Galva and KSS Petron, both of which had defaulted on loan repayments.

In the case of Numetal, one of its shareholders was Rewant Ruia, whose father Ravi Ruia is a co-founder of the Essar Group.

The bids

In its October 4 order, the Supreme Court had director the Committee of Creditors - consisting of Essar Steel's lenders - to consider the second round of bids.

Apart from Numetal and ArcelorMittal, Vedanta Resources had also submitted a bid in the second round.

While Numetal submitted an offer of Rs 37,000 crore, ArcelorMittal bid about Rs 32,000 crore and Vedanta Resources bid around Rs 34,000 crore.

But in September, before the bids were opened by the CoC, ArcelorMittal had revised its offer to Rs 42,000 crore.

It is possible though that the lenders will allow the bidders - whoever remains in contention - to revise their bids.