The bench also clarified that if Renaissance Steel wins the case, then the Committee of Creditors (CoC) will have to return the money to Vedanta.
The appellate tribunal also reserved its order over Renaissance Steel's petition.
On May 17, NCLAT admitted the petition of Renaissance Steel challenging Vedanta's bid for debt-ridden Electrosteel.
Renaissance Steel's resolution application was rejected by the CoC of Electrosteel Steels.
Earlier on May 1, NCLAT had directed maintaining status quo in the case pertaining to the sale of the debt-laden firm to Vedanta Ltd.
Renaissance had submitted before the NCLAT that Vedanta is not eligible to bid for Electrosteel under section 29 A of the Insolvency and Bankruptcy Code as one of Vedanta's affiliates in Zambia -- a unit of its UK-based parent Vedanta Resources Plc -- had been found guilty of criminal misconduct.
Electrosteel owes lenders more than Rs 130 billion, of which about Rs 500 billion is to State Bank of India alone.
Last month, the Kolkata bench of the National Company Law Tribunal (NCLT) had cleared Vedanta's Rs 53.20 billion resolution plan for Electrosteel, rejecting objections by Renaissance Steel.
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