BackConsider employees objection to Tata Steel bid: NCLT to Bhushan Steel creditors
NCLT has asked CoC, which is scheduled to meet on Tuesday over the resolution plan of the highest bidder Tata Steel, to consider the objections raised by the employees of Bhushan Steel
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New Delhi: The committee of creditors (CoC) of debt-ridden Bhushan Steel has been directed by the National Company Law Tribunal (NCLT) to consider objections raised by company employees over the bid submitted by Tata Steel in its meeting on Tuesday.
A two-member NCLT bench headed by Justice M.M. Kumar directed the CoC, which is scheduled to meet on Tuesday over the resolution plan of the highest bidder Tata Steel, to consider the objections raised by the employees.
The tribunal also directed the resolution professional to report about the decision taken by the CoC in this regard to the NCLT. “Objections filed by the applicants shall be forwarded to the CoC for due consideration on March 20, 2018. Any decision taken by them in this shall be placed before NCLT at the time of final approval of the resolution plan," the NCLT said.
During the proceedings, senior advocate A.S. Chandhiok appearing for the employees of Bhushan Steel submitted before the bench that Tata Steel is an ‘undischarged insolvent’ and is not entitled under section 29 A of the IBC Code.
He further informed that he has furnished all documents and other related documents regarding it to the resolution professional. “Consider my application and pass an appropriate order," said Chandhiok. However, senior advocate Rajiv Nayyar, appearing for Tata Steel, opposed Bhushan Employees’ application questioning their locus on the matter.
The NCLT refused it stating that it is not inclined to accept Tata Steel’s objection at this stage. On 7 March, Tata Steel had said it had been identified as the highest resolution applicant to acquire controlling stake of Bhushan Steel, which was undergoing insolvency proceeding.
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