The National Company Law Appellate Tribunal (NCLAT) today turned down the plea of UK-based Liberty House to stay the resolution process of Bhushan Power and Steel.
A two-member bench of the appellate tribunal, headed by Chairman Justice S J Mukhopadhaya, directed the committee of creditors (CoC) to go ahead with the resolution process. During the proceedings of the tribunal, counsel appearing for Liberty House said that they were not getting information regarding finalisation of the bids and requested the appellate tribunal to halt it. However, the tribunal did not agree and asked the CoC to proceed with the resolution plans submitted before it.
“The CoC (committee of creditors) has the option to pass appropriate orders with respect to resolution applicants and place the same before the adjudicating authority (NCLT),” the tribunal said. It further added: “The adjudicating authority is also free to pass any orders”. At present, the lenders of Bhushan Power and Steel (BPSL) are in the process of finalising the bids.
Earlier, lenders of BPSL had rejected the resolution plan submitted by Liberty House citing delay, following which the UK-based group had moved the National Company Law Tribunal (NCLT). The NCLT had on April 23 directed BPSL’s lenders, led by PNB, to consider the bid submitted by Liberty House. This order was later challenged by Tata Steel, another resolution applicant of BPSL, before NCLAT.