New Delhi: The National Company Law Tribunal (NCLT) 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 Rs1 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 Rs1 lakh.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 Tuesday and a detailed judgement is awaited.
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 Rs32,500 crore deal along with 12.27 per cent 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 IBC.