The National Company Law Tribunal (NCLT) today asked the Committee of Creditors (CoC) of debt-ridden Bhushan Steel to consider the objections raised by its employees over the bids submitted by Tata Steel. The CoC, which is scheduled to meet tomorrow to take up the resolution plan of the highest bidder Tata Steel, would consider the objections raised by the employees.
The tribunal has also directed the insolvency resolution professional (IRP) to report the decision on the objections of the employees. “Objections filed by the applicants would be forwarded to CoC for consideration. Any decision taken would be communicated to NCLT at the time of submission of the final resolution plan,” said NCLT President Justice M M Kumar.
During the proceedings, senior advocate AS Chandhiok appearing for the employees submitted before the bench that Tata Steel is an ‘undischarged insolvent’ and is not entitled under Section 29 A of the IBC Code. Senior advocate Rajiv Nayyar, appearing for Tata Steel, opposed Bhushan employees’ application questioning their locus on the matter. However, the NCLT refused, stating that it is “not inclined to accept” Tata Steel’s objection at this stage.
On March 7, Tata Steel had said it had been identified as the highest resolution applicant to acquire controlling stake of Bhushan Steel, which was undergoing insolvency proceeding.
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