NCLT approves Tata Steel's bid submitted by Bhushan Steel's resolution professional

New Delhi: The National Company Law Tribunal (NCLT) on Tuesday approved Tata Steel's bid for debt-ridden Bhushan Steel.

The tribunal also dismissed a plea filed by the employees of Bhushan Steel opposing Tata Steel's bid and imposed a fine of Rs 1 lakh.

The bench comprising NCLT President Justice M M Kumar and S K Mohapatra also dismissed the plea of engineering and construction major L&T seeking higher priority in recovery of loan and imposed a fine of Rs 1 lakh.

Representational image. Reuters.

Representational image. Reuters.

L&T, which is an operational creditor of Bhushan Steel, had sought higher priority in recovery of debt in the resolution process at par with the financial creditors.

The tribunal also rejected Bhushan Energy's plea to continue its power purchase agreement with Bhushan Steel.

The order was pronounced in court on Tuesday and detailed judgement is awaited.

Earlier on April 11, the principal bench of the tribunal had reserved its order after hearing all the sides.

The Committee of Creditors (CoC) had approved Rs 32,500 crore deal along with 12.27 percent equity in Bhushan Steel offered by Tata Steel.

However, some employees of Bhushan Steel had challenged it before NCLT contending that Tata Steel was not eligible under section 29 (A) of the Insolvency and Bankruptcy Code (IBC)

Updated Date: May 15, 2018 12:10 PM

Also Watch

IPL 2018: Royal Challengers Bangalore eye revival against Chennai Super Kings as 'Cauvery Derby' comes back to life
  • Thursday, April 26, 2018 In the Kanjarbhat community, a campaign against 'virginity tests' is slowly gaining ground
  • Tuesday, April 24, 2018 It's A Wrap: Beyond the Clouds stars Ishaan Khatter, Malavika Mohanan in conversation with Parul Sharma
  • Monday, April 9, 2018 48 hours with Huawei P20 Pro: Triple camera offering is set to redefine smartphone imaging
  • Monday, April 16, 2018 Rajyavardhan Singh Rathore interview: Sports can't be anyone's fiefdom, we need an ecosystem to nurture raw talent

Also See