A court in the UK has refused to issue a worldwide freezing order against the parent company of Essar Steel and members of the promoter family — Ravi and Prashant Ruia.

The order came as steel maker ArcelorMittal looked to enforce a $1.5 billion arbitral award stemming from a soured supply agreement.

In an 81-page judgment, high court Judge Andrew Henshaw on Monday found no merit in the case being brought by ArcelorMittal to enforce a worldwide freeze on Essar’s assets to protect them from “dissipation” while the former pursues parallel legal remedies.

Reached for comments, ArcelorMittal hinted it may appeal against the judgment while an Essar spokesperson welcomed the decision saying the firm has “consistently argued that the underlying claims of wrongdoing — and therefore the applications for the freezing orders — were (and continue to be) ill-conceived and without any factual support”.

“We feel vindicated that the English Court has determined in this regard that ArcelorMittal USA LLC (AMUSA) has no good arguable case to bring before the court.

“This judgment has also vindicated Essar and its founders from any wrongdoing with regard to historic legitimate business transactions that AMUSA had previously sought to mischaracterise to its advantage in both the English and Cayman Courts,” the spokesperson said.

ArcelorMittal in a statement said: “This is a complex dispute relating to alleged conspiracies to harm ArcelorMittal USA.

The recent judgment is subject to appeal and is in any event ancillary to the main conspiracy claim against members of the Ruia family and Essar Group's parent company, amongst others.”

“That conspiracy claim is going to be pursued vigorously to the final judgment against them. This action is connected to a $1.5 billion judgment, which remains unsatisfied, and the World Wide Freezing Order granted by the Commercial Court in England against Essar Steel. The freezing order and related search orders were upheld by the English Court of Appeal,” it said.