New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Tuesday agreed to hear the petition by Bhushan Steel’s operational creditor Larsen and Toubro Ltd, challenging an NCLT order on the recovery of its Rs962 crore dues from the insolvent company on priority.
The NCLT had earlier dismissed the L&T plea seeking higher priority in the recovery of dues over Bhushan Steel’s secured creditors, while approving the resolution plan submitted by Tata Steel Ltd.
Subsequently, the engineering and construction major had moved the appellate tribunal.
The NCLAT bench, headed by Justice SJ Mukhopadhyay, issued notices to the resolution professional, the committee of creditors to Bhusan Steel and Tata Steel, which won the bid for the debt-laden company, and asked them to file their replies by 28 May.
Appearing for L&T, senior counsel Mukul Rohatgi raised objections to Tata Steel’s resolution plan for being “oppressive" to it. “The resolution professional admitted my claim, but I got nothing (in the approved resolution plan)," said Rohatgi.
On 15 May, the NCLT’s principal bench had approved Tata Steel’s resolution plan, which promises an upfront payment of Rs35,200 crore to Bhushan Steel’s lenders, besides picking up a 12.27% stake in the steel maker.
Tata Steel’s resolution plan had proposed to pay Bhushan Steel’s operational creditors Rs1,000 crore, and another Rs200 crore on a pro-rata basis over one year, depending on the “vitality to running the business".
Tata Steel has started the acquisition process by picking up a controlling stake of 72.65% in Bhushan Steel for around Rs36,400 crore.
On Monday, the NCLAT had refused to grant an interim stay on the Tata’s acquisition of the debt-laden company in a separate appeal by Bhushan Steel’s promoter Neeraj Singal, challenging a 15 May NCLT order.
The matter will be next heard on 30 May.