Tata Steel moves NCLAT over Liberty House bid for Bhusan Power

Tata Steel has moved the National Company Law Appellate Tribunal (NCLAT) challenging the order of NCLT, which had in April directed the CoC of debt-ridden Bhushan Power & Steel to consider the bid of UK-based Liberty House.

Tata Steel petition is scheduled to be heard on Wednesday before a NCLAT bench headed by Chairman Justice S J Mukhopadhaya. It has challenged the April 23, 2018 order passed by the National Company Law Tribunal (NCLT), which asked the lenders of Bhushan Power & Steel led by PNB, to consider the bid submitted by Liberty House.

Tata Steel was believed to be the highest bidder for BPSL. The committee of creditors (CoC) had not accepted the bid of Liberty House on account of late submission. This was challenged by Liberty House before NCLT, which had allowed the plea and directed the committee of creditors to complete its resolution proceedings by June 23.

A two-member NCLT bench, headed by President Justice M M Kumar had said that Liberty House bid cannot be disqualified only on the ground of being submitted after the deadline of the resolution professional (RP).

"We hope that CoC takes an appropriate commercial decision as per the Insolvency and Bankruptcy Code (IBC)," NCLT had said.

The CoC had in February rejected Liberty House's bid to acquire Bhushan Power and Steel, leaving Tata Steel and JSW Steel in the race for taking over the assets of the bankrupt firm.

Liberty House had submitted before the NCLT that RP rejected its bid to acquire Bhushan Power and Steel without even opening the seal of its offer.

Bhushan Power and Steel Ltd was among the 12 non-performing assets the Reserve Bank had referred for insolvency proceedings in June last year. The company owes about Rs 45,000 crore to its lenders.