NCLAT Declines To Stay Bhushan Steel Sale To Tata Steel; Issues Notices
NCLAT declines to stay Tata Steel’s acquisition of the debt-laden Bhushan Steel.
The National Company Law Appellate Tribunal today declined to stay Tata Steel Ltd.’s acquisition of debt-laden Bhushan Steel Ltd. under the corporate insolvency resolution process.
An NCLAT bench headed by Chairman Justice SJ Mukhopadhaya issued notices to Tata Steel, the resolution professional and committee of creditors of Bhushan Steel on a petition filed by its promoter Neeraj Singal challenging the sale.
“Let us decide the law but not stall the process,” the bench said, adding that the resolution process would be subject to the final outcome of the case. The bench directed the matter to be listed on May 30 and asked the parties to file their replies in a week.
Meanwhile, engineering and construction major Larsen & Toubro Ltd., which is an operational creditor of Bhushan Steel, has also approached the appellate tribunal against the National Company Law Tribunal’s order approving sale of the debt-ridden firm to Tata Steel. L&T’s plea will be heard tomorrow.
In his petition, Neeraj Singal challenged the eligibility of Tata Steel as resolution applicant under Section 29(A) of the Insolvency and Bankruptcy Code. He contended that no notice was given to him when the CoC was approving the resolution plan. He also alleged that a copy of the resolution plan was not given to him.
Singal has sought a stay on the NCLT order which had approved Tata Steel’s bid for Bhushan Steel under the insolvency resolution process.
Singal, who holds around 22 percent stake in Bhushan Steel, had previously requested the appellate tribunal to maintain status quo over the company’s shareholding.
On May 15, the NCLT had approved the resolution plan submitted by the resolution professional of Bhushan Steel, which had found Tata Steel as the highest bidder.