NCLT tells lenders to consider Bhushan staff objections

NCLT tells lenders to consider Bhushan staff objections

FPJ BureauUpdated: Wednesday, May 29, 2019, 11:25 PM IST
article-image

New Delhi : The Committee of Creditors (CoC) of debt-ridden Bhushan Steel has been directed by the National Company Law Tribunal to consider objections raised by company employees over the bid submitted by Tata Steel in its meeting tomorr.

A two-member NCLT bench headed by Justice M M Kumar directed the CoC, which is scheduled to meet tomorrow over the resolution plan of the highest bidder Tata Steel, to consider the objections raised by the employees.

The tribunal also directed the resolution professional  to report about the decision taken by the CoC in this regard to the NCLT.

“Objections filed by the applicants shall be forwarded to the CoC for due consideration on March 20, 2018. Any decision taken by them in this shall be placed before NCLT at the time of final approval of the resolution plan,” the NCLT said.

During the proceedings, senior advocate AS Chandhiok appearing for the employees of Bhushan Steel submitted before the bench that Tata Steel is an ‘undischarged insolvent’ and is not entitled under section 29 A of the IBC Code.

He further informed that he has furnished all documents and other related documents regarding it to the resolution professional.

“Consider my application and pass an appropriate order,” said Chandhiok.

However, senior advocate Rajiv Nayyar, appearing for Tata Steel, opposed Bhushan Employees’ application questioning their locus on the matter.

The NCLT refused it stating that it is not inclined to accept Tata Steel’s objection at this stage.

On March 7, Tata Steel had said it had been identified as the highest resolution applicant to acquire controlling stake of Bhushan Steel, which was undergoing insolvency proceeding.

RECENT STORIES

Rally Of Green At Dalal Street: BSE, Nifty End FY24 On A High Note; Will The Good Run Continue In...

Rally Of Green At Dalal Street: BSE, Nifty End FY24 On A High Note; Will The Good Run Continue In...

Ipca Laboratories Shareholders Reject Employees Stock Option Scheme Resolution

Ipca Laboratories Shareholders Reject Employees Stock Option Scheme Resolution

Toyota Set To Raise Prices On Select Models Starting April 1!

Toyota Set To Raise Prices On Select Models Starting April 1!

The Storm On Wheels: Suzuki Launches V-STROM 800DE

The Storm On Wheels: Suzuki Launches V-STROM 800DE

With 1,59,000 Cases, Maharashtra, India's Richest State Has The Highest Number Of Bank Frauds:...

With 1,59,000 Cases, Maharashtra, India's Richest State Has The Highest Number Of Bank Frauds:...