The National Company Law Appellate Tribunal (NCLAT) today 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 S J 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.
The appellate tribunal declined to pass any interim stay over the process and said that the acquisition process will be subject to the final outcome of the appeal.
"Let us decide the law but not stall the process," the bench said.
The bench directed the matter to be listed on May 30 and asked the parties to file their replies in a week.
The NCLAT has also issued notices to Bhushan Steel employees, who had also challenged the sale before the National Company Law Tribunal (NCLT).
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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 per cent equity in the company offered by Tata Steel.
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, which has a claim of Rs 900 crore, will be heard by NCLAT tomorrow.
During the proceedings, senior advocate Mukul Rohtagi, appearing for L&T, submitted that Tata Steel's resolution plan was oppressive against the operational creditors.
Senior advocate U K Chaudhary, appearing for Singal who holds around 22 per cent stake in Bhushan Steel, said that the entire resolution process was illegal.
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.
He has sought stay on the order of NCLT, which had approved Tata Steel's bid for Bhushan Steel under corporate insolvency resolution rocess.