Vedanta’s bid to acquire the bankrupt Electrosteel Steels received the final nod from the Kolkata Bench of the National Company Law Tribunal (NCLT) on Tuesday.
The Division Bench comprising Justice Jinan KR and Justice Madan Balachandra Gosavi, in its order on Tuesday, said that the approved resolution plan (RP) “shall come into force with immediate effect’’.
Electrosteel is among the first 12 large corporate accounts identified by the Reserve Bank of India for resolution under corporate insolvency resolution process.
By approving Vedanta’s resolution plan, the Division Bench comprising Justice Jinan KR and Justice Madan Balachandra Gosavi dismissed the rival bidder Renaissance Steel India’s allegation that the company was not an “eligible bidder’’ for the insolvent steel maker.
Earlier this month, Renaissance had filed an application before the Division Bench, challenging the Committee of Creditors’ (CoC) decision that Vedanta and Tata Steel are “eligible bidders’’ for Electrosteel Steels.
Vedanta had earlier (March 31, 2018) informed the stock exchanges that it was declared “successful resolution applicant” under the insolvency process and had received the Letter of Intent (LoI). The company also said it had accepted the terms of LoI.