Renaissance Steel has approached the National Company Law Appellate Tribunal requesting to declare “ineligible” Tata Steel Ltd.’s bid for the debt-ridden Electrosteel Steels Ltd. under the Insolvency and Bankruptcy Code.
An NCLAT bench headed by Chairman Justice SJ Mukhopadhyay has issued a notice to second highest bidder Tata Steel and the resolution professional of Electrosteel over it. It has also directed them to file reply within a week and listed the matter for hearing on May 28.
In its petition, Renaissance Steel has requested the NCLAT to “pass an appropriate order declaring Tata Steel as ineligible under Section 29(D) of the IBC.
During the proceedings, Senior Advocate Rajiv Nayar, appearing for Tata Steel, contended that the entire exercise is now academic only because it was the second highest bidder for Electrosteel Steels.
Renaissance Steel is also contesting the Rs 5,320-crore resolution plan by Vedanta group for Electrosteel, which was approved by the Kolkata bench of the NCLT, before the appellate tribunal. Yesterday, the NCLAT had admitted the petition of Renaissance Steel challenging Vedanta Ltd.’s bid for Electrosteel.
Renaissance Steel’s resolution application was rejected by the committee of creditors of Electrosteel Steels. The company owes lenders more than Rs 13,000 crore, of which about Rs 5,000 crore is to State Bank of India alone.
On May 1, the NCLAT had directed that status quo be maintained in the case pertaining to the sale of debt ridden Electrosteel Steels to Vedanta.
Renaissance has submitted before the NCLAT that Vedanta is not eligible to bid for Electrosteel under Section 29(A) of the IBC.