New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Monday upheld the decision of Bhushan Power and Steel’s committee of creditors to approve the resolution plan given by JSW Steel. The appellate tribunal was hearing a petition by Tata Steel, which challenged the creditors committee’s decision to approve the resolution plan of JSW Steel.
Tata Steel had claimed that JSW Steel had revised its bid multiple times and such revision is not allowed under the Insolvency and Bankruptcy Code. The appellate tribunal today said the case will now go to National Company Law Tribunal, New Delhi, which will formally approve the resolution plan.
NCLAT asked the National Company Law Tribunal to ensure that there is no discrimination against operational creditors of Bhushan Power. The appellate tribunal said if the National Company Law Tribunal feels the resolution plan does not treat operational creditors fairly, it can ask JSW Steel to revise the bid again.
Tatas plea turned down
Meanwhile, the Tribunal turned down Tata Steel’s request to consider its bid as the ‘most legitimate” one for Bhushan Power & Steel. Tata Steel had moved the tribunal after Bhushan Power’s lenders agreed to consider a competing bid by Liberty House, which the Tata company said had come into the race past the deadline.