VTB Group, the largest shareholder of Numetal, has vowed to remain in the hunt for Essar Steel, belying the perception that the Supreme Court has given a clear head start to rival ArcelorMittal.

The Russian banking group on Friday said its lawyers were studying the apex court’s judgment and a decision would be taken based on the review.

“Our goal remains the same. The Supreme Court has made certain decisions, lawyers are now studying. Depending on the decision, we will determine our future strategy and tactics,” Anderi Kostin, head of VTB Bank, said in New Delhi.

Kostin is part of a high-powered delegation accompanying Russian president Vladimir Putin, who is on a two-day state visit to India.

VTB Bank, through subsidiary Crinium Bay, holds a 40 per cent stake in Numetal, which has submitted a bid of Rs 37,000 crore for Essar Steel in the second round.

The SC observed the “looming presence of Rewant Ruia” was found in Numetal all along. The court held that Rewant Ruia was a person deemed to be acting in concert with his father Ravi Ruia, who is the corporate debtor of Essar Steel, and would be rendered ineligible to submit a resolution plan (bid) under section 29A(C).

The only way Numetal can participate is by paying the overdues of all non-performing assets linked to the promoter, and not only Essar Steel. Initial estimates suggest Numetal has to pay upwards of Rs 39,000 crore compared with only Rs 7,000 crore by ArcelorMittal to become eligible.

“The SC judgment suggests that Numetal has to pay off NPAs of all Essar group companies, including Essar Steel, to become eligible,” Kishnava Dutt, managing partner of solicitor & advocate Argus Partners, said.

“The only manner in which Numetal can successfully present a resolution plan would be to first pay off the debts of ESIL, as well as those of such other corporate debtors of the Ruia group of companies, which were declared as NPAs prior to the aforesaid period of one year, before submitting its resolution plan,” the judgment read.

Industry observers suggest NPAs linked to several group firms may need to be cleared.

Legal observers said fresh litigation may arise when the committee of creditors of Essar raises the overdue demands on the two bidders.

Kostin himself appeared to have suggested such a possibility. “The finalisation of the transaction depends on the decision of the Indian courts, so this saga will continue for sometime,” he said.

Even as the court has categorically said the overdue payment would only make them eligible, it has not clarified the amount.

“If Numetal pays up the entire amount due to the financial creditors of Essar, how would the insolvency process play out going forward?” an observer asked.

However, a section of the legal fraternity said the insolvency process would not end and bidding would continue. “Question of taking the company out of IBC does not arise. There is no such provision at this stage,” said a lawyer.