The resolution professionals (RP) of Bhushan Steel today rejected the arguments of employees of the debt ridden firm before NCLT that Tata Steel, which has been selected as highest bidder, was not eligible to bid under the provisions of IBC Code.
Counsel appearing for RP contended before the National Company Law Tribunal (NCLT) that Section 29 (A) of the IBC Code does not apply on Tata Steel.
"Section 29 (A) applies only to the living citizen and individual and not to a corporate entity," submitted senior advocate Ravi Kadam appearing for RP of BSL.
The employees of Bhushan Steel have contended before the NCLT that Tata Steel's bid was in violation of Section 29A of the IBC Code.
Section 29A (d) of IBC mandates that a person convicted for any offence punishable with imprisonment for two years or more ineligible from submitting a resolution plan.
Tata Steel UK, a foreign subsidiary of Tata Steel, was fined 1.4m over violation of health and safety norms by an English Court in February 2018.
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They also rejected the claims of Larsen & Toubro (L&T) for being treated as a secured financial creditor saying that it had earlier filed affidavit saying it has no secured interests in Bhushan Steel.
NCLT would continue its hearing tomorrow.
Yesterday, L&T had termed the resolution plan of Bhushan Steel Ltd as "discriminatory" and "arbitrary" saying its Rs 900 crore outstanding has not been given due priority by CoC.
Tata steel has emerged as the highest bidder for Bhushan Steel with offer of Rs 35,200 crore in cash along with 12.27 per cent of equity.
As on February 1, 2018, Bhushan Steel had a total debt of Rs 57,160 crore.