NCLAT declines to stay Bhushan Steel sale to Tata Steel, issues notices

NCLAT declines to stay Bhushan Steel sale to Tata Steel, issues notices

PTIUpdated: Wednesday, May 29, 2019, 09:12 AM IST
article-image

New Delhi: The National Company Law Appellate Tribunal (NCLAT) today declined to stay Tata Steel’s acquisition of debt-laden Bhushan Steel under the corporate insolvency resolution process.

An NCLAT bench headed by Chairman Justice S J Mulhopadhaya also issued notices to Tata Steel, the resolution professional and Committee of Creditors (CoC) of Bhushan Steel on a petition filed by its promotor 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 L&T, which is an operational creditor of Bhushan Steel, has also approached the appellate tribunal against NCLT’s order approving sale of the debt-ridden firm to Tata Steel. L&T’s plea would be heard tomorrow. In his petition, Neeraj Singal has challenged the eligibility of Tata Steel as resolution applicant under Section 29 A of the Insolvency and Bankruptcy Code.

He further contended that no notice was given to him when CoC was approving the resolution plan. Singal also alleged that a copy of the resolution plan was also not given to him. Singal has sought stay on the order of the National Company Law Tribunal (NCLT), which had approved Tata Steel’s bid for Bhushan Steel under corporate insolvency resolution rocess.

Singal, who holds around 22 per cent stake in Bhushan Steel, had requested the appellate tribunal to maintain status quo over the company’s shareholding. On May 15, NCLT had approved the resolution plan submitted by the RP of Bhushan Steel, which has found Tata Steel as the highest bidder. The Committee of Creditors had approved the Rs 32,500 crore deal along with 12.27 per cent equity in the company offered by Tata Steel.

RECENT STORIES

Game-Changing Alliance: Ambani's Reliance Ventures Into Adani's Power For The First Time; Acquires...

Game-Changing Alliance: Ambani's Reliance Ventures Into Adani's Power For The First Time; Acquires...

SRM Contractors IPO Subscribed 86.57 Times On Last Day Of Bidding

SRM Contractors IPO Subscribed 86.57 Times On Last Day Of Bidding

Tax-Saving Tip From Zerodha CEO Nithin Kamath: 'If You're Married And Hindu..."; Here's How To Save...

Tax-Saving Tip From Zerodha CEO Nithin Kamath: 'If You're Married And Hindu...

Holy Cities Like Ayodhya, Varanasi Attracting Big Retail Brands: Report

Holy Cities Like Ayodhya, Varanasi Attracting Big Retail Brands: Report

A Big Relief For Byju's: NCLT Rejects Investor Plea To Stay Byju's Rights Issue EGM On March 29 Amid...

A Big Relief For Byju's: NCLT Rejects Investor Plea To Stay Byju's Rights Issue EGM On March 29 Amid...