NCLT approves Tata Steel bid for debt-ridden Bhushan Steel

Plea of Bhushan employees dismissed

- The tribunal also dismissed a plea filed by the employees of Bhushan Steel opposing Tata Steel’s bid and imposed a fine of Rs1 lakh

- The NCLT also dismissed the plea of engineering major L&T seeking higher priority in recovery of loan and imposed a fine of Rs1 lakh

- It also rejected Bhushan Energy’s plea to continue its power purchase agreement with Bhushan Steel

New Delhi, May 15

The National Company Law Tribunal (NCLT) on Tuesday approved Tata Steel’s bid for debt-ridden Bhushan Steel. The tribunal also dismissed a plea filed by the employees of Bhushan Steel opposing Tata Steel’s bid and imposed a fine of Rs 1 lakh.

The Bench comprising NCLT president Justice MM Kumar and SK Mohapatra also dismissed the plea of engineering and construction major L&T seeking higher priority in recovery of loan and imposed a fine of Rs 1 lakh.

L&T, which is an operational creditor of Bhushan Steel, had sought higher priority in recovery of debt in the resolution process at par with the financial creditors.

The tribunal also rejected Bhushan Energy's plea to continue its power purchase agreement with Bhushan Steel.

The order was pronounced in court on Tuesday and detailed judgment is awaited.

Earlier on April 11, the principal Bench of the tribunal had reserved its order after hearing all the sides.

The Committee of Creditors (CoC) had approved Rs 32,500-crore deal along with 12.27% equity in Bhushan Steel offered by Tata Steel.

However, some employees of Bhushan Steel had challenged it before the NCLT contending that Tata Steel was not eligible under Section 29 (A) of the Insolvency and Bankruptcy Code (IBC). — PTI