Declare Tata Steel's bid for Electrosteel 'ineligible': Renaissance Steel

Renaissance Steel has approached the National Company Law Appellate Tribunal (NCLAT) requesting to declare "ineligible" the Tata Steel's bid for the debt-ridden Electrosteel Steels under the Insolvency and Bankruptcy Code.

An NCLAT bench headed by Chairman Justice S J Mukhopadhyaya has issued notice to Tata Steel, which was the second highest bidder, and the resolution professional of Electrosteel over it.

It has also directed them to file reply within a week and directed to list the matter for hearing on May 28.

In its petition, Renaissance Steel has requested the NCLAT to "pass an appropriate order declaring Tata Steel Ltd as ineligible under section 29 (D)" under the Insolvency and Bankruptcy Code.

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 contesting Rs 53200 million 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's bid for Electrosteel.

Renaissance Steel's resolution application was rejected by the Committee of Creditors (CoC) of Electrosteel Steels.

Electrosteel Steels owes lenders more than Rs 130000 million, of which about Rs 50000 million 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 Ltd.

Renaissance has submitted before the NCLAT that Vedanta is not eligible to bid for Electrosteel under section 29 A of the Insolvency and Bankruptcy Code.

 



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