NCLAT refuses to allow second round of bidding for Bhushan Power and Steel
NCLAT reiterates its 9 May order allowing the creditors to consider the resolution plans submitted for debt-laden Bhushan Power and Steel
New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Thursday refused to entertain a second round of bidding for Bhushan Power and Steel Ltd, following a “suggestion” by the committee of creditors (CoC) of the debt-laden company.
The two-judge NCLAT bench headed by Justice S.J. Mukhopadhyay heard the appeal moved by Tata Steel Ltd against a National Company Law Tribunal (NCLT) order directing the CoC to consider UK-based Liberty House’s resolution plan and “take (an) appropriate commercial decision”. The Tata Steel is in the race to acquire Bhushan Power and Steel.
The appellate tribunal reiterated its 9 May order allowing the CoC to consider the resolution plans submitted before it and to place the decision with respect to the successful bidder in a sealed cover. This decision is subject to the final outcome of the appeal.
The appellate tribunal also said that the duration of the pending appeal be excluded from the 270-day resolution window, during which a corporate insolvency process has to be completed.
Liberty House had moved NCLT on 26 February against the rejection of its “unopened” bid for Bhushan Power and Steel by the CoC for late submission, and its failure to submit certain documents, such as a confidentiality undertaking.
The last date for submission of bids was 8 February, whereas the insolvency resolution professional received Liberty House’s proposal on 20 February.
Bhushan Power and Steel, which owes over Rs48,500 crore to a consortium of lenders led by Punjab National Bank, is one of the 12 large companies identified by the Reserve Bank of India for early insolvency resolution. The resolution period for the company ends on 23 June.
The case will be next heard on 12 July.
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