Setback for ArcelorMittal: Cayman Island court refuses worldwide freeze on Essar Global Fund

In a setback to ArcelorMittal, the Grand Court of Cayman Island has declined its plea for a 'Garnishee Order' and a 'Freezing Injunction' against Essar Global Fund Ltd, the parent firm of Essar Group of companies, for recovering a USD 1.5 billion arbitration award.

ArcelorMittal has mounted legal battles against the Ruia family in multiple countries in an effort to enforce a USD 1.5 billion US arbitration award it had won in December 2017 on an Essar Steel Minnesota's terminated iron-ore pellets supply contract to ArcelorMittal USA LLC (AMUSA).

But Essar Steel Ltd, which had assumed the liabilities of the US contract, has said it could not pay. It now has less than USD 2.5 million in assets.

To seek enforcement of the award, ArcelorMittal moved courts in Britain, Mauritius, and the Cayman Island seeking a 'Garnishee Order Absolute' and a 'Freezing Injunction and Asset Disclosure Award' against Essar Global Fund Ltd (EGFL).

Justice Ian RC Kawaley in a 30-page order issued on July 2 ...