New Delhi : The National Company Law Appellate Tribunal (NCLAT) on Friday upheld the sale of Bhushan Steel to Tata Steel, rejecting allegations of its ineligibility by the promoters of the debt-ridden firm.
The appellate tribunal also rejected the claims of engineering and construction major L&T, an operational creditor of Bhushan Steel, opposing Tata Steel’s resolution plan seeking a higher priority in debt resettlement. An NCLAT bench headed by Chairman Justice S J Mukhopadhaya rejected the claims of its promoters Neeraj Singal that Tata Steel was ineligible to bid for Bhushan Steel under section 29 A of the Insolvency & Bankruptcy Code (IBC).
The appellate tribunal said that Tata Steel UK, a foreign subsidiary of Tata Steel, which was fined by an English Court in February 2018 under UK Act, had a provision of ‘imprisonment for a term not exceeding twelve months, or a fine, or both’. While, the provision in section 29A (d) of IBC, which deals with eligibility, stipulates “has been convicted for any offence punishable with imprisonment for two years or more”, cannot be equated with Section 33(1)(a) of the ‘U.K Act, said NCLAT.