The National Company Law Tribunal (NCLT) on Thursday approved JSW Steel’s ₹19,700 crore bid for Bhushan Power and Steel Limited (BPSL).
However, the company is likely to appeal against the order as NCLT had disposed of JSW Steel’s petition seeking various reliefs from statutory authorities under the Income Tax Act 1961, Ministry of Corporate Affairs, Department of Registration of Stamps and Reserve Bank of India (RBI), said sources in the know of the development.
Filing application
“We do not feel persuaded to accept the prayer made in the resolution plan yet the resolution plan applicant may file appropriate applications before competent authorities which would be considered in accordance with law because it would not competent for adjudicating authority— NCLT — to enter into any such area for granting relaxation, concession or waiver, which is wholly within the domain of competent authorities,” said the order.
A JSW official told The Hindu, “Our bid for BPSL has been approved by NCLT today. We are going through the fine print of the order and as per our legal input, we will take a call tomorrow.”
The NCLT ruled that the profit made by BPSL during the insolvency period must be distributed to creditors, in accordance with a ruling by a higher tribunal in a case involving ArcelorMittal-Essar Steel India.
“National Company Law Tribunal, Principal Bench, New Delhi, has today, in its pronouncement approved the resolution plan submitted by JSW Steel Limited in respect of the corporate insolvency resolution process of Bhushan Power and Steel Limited.
“The written order containing the details and terms of such approval, if any, are awaited,” said the company in filing to the exchanges.
A two-member principal bench of the NCLT, headed by Justice M. M. Kumar, also said the criminal cases against the promoters of BPSL for siphoning of the funds from the company would not impact JSW Steel as it was a new promoter.
Rejects objections
The NCLT rejected the objections raised by Tata Steel over the bids submitted by JSW and its erstwhile BPSL promoters.
Tata Steel had objected to the improved financial offer of JSW Steel before the resolution professional and the committee of creditors of Bhushan Power and Steel.
JSW Steel shares on the BSE rose 0.77% to close at ₹216.25 in a weak Mumbai market on Thursday.
