The resolution professional for Bhushan Steel on Tuesday approached National Company Law Tribunal (NCLT) alleging that employees of the steel firm were not cooperating with him, denying access to the desired documents and records.
The counsel for the company refuted the charge. The principal bench of the tribunal, led by President Justice MM Kumar, asked the company to reply on the allegation in the form of an affidavit within three days.
As per the Insolvency and Bankruptcy Code (IBC), officers and managers of the corporate debtor are required to report to the interim resolution professional and provide access to such documents and records of the corporate debtor as may be required by the interim resolution professional.
On an insolvency petition filed by State Bank of India, Bhushan Steel was admitted on July 26, 2017 and Vijaykumar V Iyer was appointed as the resolution professional. Bhushan Steel owes banks a whopping `48,152 crore, as of March, 2017.
Bhushan Steel is promoted by the Singal family. The company has 5.6 million tonne per annum steel-making capacity. It reported a net loss of Rs 3,501 crore in 2016-17 on revenues of Rs 15,027 crore.
The bidding process for the company has been completed. Tata Steel and JSW Steel have bid for the company.