 "NCLAT reserves order over Bhushan Steel, challenging sale to Tata Steel")
The National Company Law Appellate Tribunal today reserved its order over plea filed by former promoter of Bhushan Steel challenging the sale of the debt-ridden company to Tata Steel under the Corporate Insolvency Resolution Process.
The appellate Tribunal has also reserved order over pleas of engineering firm Larsen & Toubro Ltd, an operational creditor of Bhushan Steel, which has supplied goods worth Rs 9 billion to the company.
A two-member bench headed by Chairman Justice S J Mukhopadhaya has said that the parties, which also includes Bhushan Energy, may file their written submissions by tomorrow.
In May, the Principal bench of the National Company Law Tribunal (NCLT) had approved Tata's Rs 325 billion deal along with 12.27 per cent equity to the lenders.
This was challenged before the NCLAT by the promoters, including Neeraj Singhal, and operational creditors of the company.
Nearly 1,700 other operational creditors of Bhushan Steel has also moved the appellate tribunal seeking to know how Tata Steel, which has committed to pay Rs 12 billion would pay them.
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Bhushan Energy had also moved the appellate tribunal as NCLT had rejected its claim to ensure continuance of its power purchase agreement with Bhushan Steel, which is proposed to be terminated under Tata Steel's resolution plan.
Bhushan Steel had entered into two power purchase agreements with Bhushan Energy for supply of power until September 2024 and December 2024, respectively.