NCLAT declines to stay Tatas’ buy of Bhushan Steel

New Delhi, May 21 

The National Company Law Appellate Tribunal (NCLAT) on Monday 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 SJ Mukhopadhaya 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 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 on Tuesday.

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 process.

Singal, who holds around 22% 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% equity in the company offered by Tata Steel. — PTI 

Deal to cut banks’ NPAs by Rs 35,000 crore

• The acquisition of Bhushan Steel will reduce bad loans of PSBs by Rs 35,000 crore
• Last week, Tata Steel completed the acquisition of controlling stake of 72.65% in Bhushan Steel for around Rs 36,400 crore after emerging as the winning bidder
• Bhushan Steel was among the 12 stressed assets the RBI had referred to the National Company Law Tribunal proceedings last year
• Following the Bhushan Steel buyout, public sector banks will write back Rs 7,500 crore of loans which were earlier classified as NPAs