The National Company Law Appellate Tribunal (NCLAT) on Monday 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 promoter Neeraj Singal challenging the sale. “Let us decide the law but not stall the process,” the Bench said, adding that the resolution process would be subject to the final outcome of the case.
The Bench directed the matter to be listed on May 30 and asked the parties to file their replies in a week.
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 the sale of the debt-ridden firm to Tata Steel.
In his petition, Mr. Singal has challenged the eligibility of Tata Steel as resolution applicant under Section 29 A of the IBC.
He further contended that no notice was given to him when CoC was approving the resolution plan. Shares of Bhushan Steel on Monday rose 4.8% to end ₹29 — its upper circuit limit — on the BSE.
