Press Trust of India reported that the National Company Law Tribunal (NCLT) on Wednesday reserved its order on a plea challenging sale of debt-ridden firm Bhushan Steel to Tata Steel by the Committee of Creditors (CoC). The Principal bench of NCLT headed by President Justice M M Kumar reserved its order after concluding the hearing in the matter.
However, some Bhushan Steel employees had challenged the decision before the NCLT contending that Tata Steel was not eligible to bid under Section 29 (A) of the IBC Code.
During the proceedings, senior advocate Rajiv Nayar representing Tata Steel said that CoC of Bhushan Steel had found its offer compliant to the regulations of the Insolvancy & Bankruptcy Code (IBC).
He also justified Tata Steel’s stand on not going with power purchase agreement (PPA) of Bhsuhan Steel with Bhushan Energy Ltd (BEL) in the resolution plan submitted before the CoC saying that it was at “exorbitant rate”.
Source : Press Trust of India