SC to hear Tata Steel plea against rebids for Bhushan Power on August 10

In May, NCLT approved Tata Steel's bid for Neeraj Singhal-led Bhushan Steel

The Supreme Court will hear a Tata Steel petition challenging the revised bids for Bhushan Power & Steel only on August 10 even as the new offers are expected to be submitted on Monday.

“This means that the deadline for fresh bid submission remains intact,” a source said. The committee of creditors (CoC) is scheduled to meet on Tuesday to consider the new offers, according to sources.

Tata Steel, UK-based Liberty House and JSW Steel had bid for Bhushan Power & Steel earlier. Those bids, however, stand null and void after fresh bids were called. In the earlier round, Tata Steel was selected as the H1 bidder by Bhushan Power lenders. If that deal went through, it would have helped Tata Steel take its India business revenue to more than 91 per cent of the total top line from 53 per cent.

“The matter is sub-judice and we do not wish to comment on this issue at present,” an official with Tata Steel said.

After the CoC gave bidders time to improve their offers — when JSW Steel revised its offer to Rs180 billion, up from Rs110 billion — Tata Steel is said to have written to the lenders, claiming a rebid was in contravention of the National Company Law Appellate Tribunal (NCLAT) order and the Insolvency and Bankruptcy Code.

In May, the National Company Law Tribunal (NCLT) approved Tata Steel's bid for Neeraj Singhal-led Bhushan Steel that, along with Kalinganagar expansion, will help Tata Steel double its capacity to 22 million tonne from around 12 million tonne.

Meanwhile, Liberty House has filed a caveat with the NCLAT, which implies that none of the parties can take any kind of action without informing Liberty House. “The Indian steel market is very competitive at present. This is the best time to buy assets in India. With regard to Bhushan Power, we are back to square one. We are not leaving any opportunity, will be submitting bids for the asset,” a Liberty House source said.