The younger brother of steel magnate Lakshmi Mittal had his deal with creditors — under which he agreed to pay 0.2 per cent of his total debts of more than $2 billion — overturned in a London court on Friday.

Pramod Mittal was declared bankrupt in June 2020 over an approximately $170 million debt owed to Moorgate Industries UK, previously called Stemcor UK Limited.

The businessman entered into an individual voluntary arrangement (IVA) with his creditors in October 2020.

Joseph Curl, representing Moorgate, said Mittal’s debts increased by a factor of more than 40 to almost $2.7 billion shortly before creditors voted on the IVA proposal.

Mittal’s lawyers arguedMoorgate did not have any evidence to support its case that the loans were a “sham”.

However, Judge Nicholas Briggs said in a ruling that “there was a material irregularity at the meeting of creditors convened to consider (Mittal’s) proposal” and revoked the IVA. Mittal’s lawyer, in an emailed statement to Reuters, said: “Mittal is disappointed with the decision and intends to appeal.