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NCLAT issues notice to Bhushan Steel RP, CoC on L&T's plea; makes Tata Steel party

The CoC had approved Rs 32,500 crore deal along with 12.27 per cent equity in the company offered by Tata Steel.

Published: 22nd May 2018 01:29 PM  |   Last Updated: 22nd May 2018 01:29 PM   |  A+A-

Men ride their bicycles in front of the Bhushan Steel plant in Odisha. (File photo | Reuters)

Men ride their bicycles in front of the Bhushan Steel plant in Odisha. (File photo | Reuters)

By PTI

NEW DELHI: The National Company Law Appellate Tribunal today issued notice to the resolution professional (RP) and Committee of Creditors (CoC) of Bhushan Steel over the plea filed by its operational creditor L&T.

NCLAT also impleaded Tata Steel, whose bid for the debt ridden firm has been approved, as party over L&T plea seeking to recover Rs 900 crore.

"Let notice be issued to CoC and RP.File their replies by May 28," said the NCLAT bench headed by Chairman Justice S J Mukhopadhaya.

The bench has directed that the matter be listed on May 30 for next hearing. It has also directed the engineering and construction major to file certified copy of NCLT order.

On May 15, the National Company Law Tribunal (NCLT) had approved the resolution plan submitted by the RP of Bhushan Steel, which has found Tata Steel as the highest bidder.

The CoC had approved Rs 32,500 crore deal along with 12.27 per cent equity in the company offered by Tata Steel.

During the proceedings, senior advocate Mukul Rohatgi appearing for L&T submittee that in the operational creditors are getting nothing from Rs 32,500 crore offer from Tata Steel.

"Though RP admits our claims of Rs 500 crore but we woule get nothing," he said adding " Rs 32,500 crore would be swallowed by the banks."

Earlier, on May 15, while approving Tata Steel bid, NCLT had dismissed the plea of L&T seeking higher priority in recovery of loan and imposed a fine of Rs 1 lakh.

 



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