NCLAT refuses to stay Tata-bhushan deal
NEWDELHI: The National Company Law Appellate Tribunal (NCLAT) on Monday refused to grant an interim stay in the acquisition of Bhushan Steel Ltd by Tata Steel Ltd.
“Let us decide the law, but not stall the process,” a bench headed by justice S J Mukhopadhyay said.
The appellate tribunal was hearing an appeal by former managing director and promoter of Bhushan Steel, Neeraj Singal challenging an order of the National Company Law Tribunal (NCLT) approving Tata Steel’s resolution plan for the debt-ridden company.
It was, however, clarified that the acquisition process would be subject to the final outcome of the appeal. The bench issued notice to the resolution professional, the committee of creditors and Tata Steel, asking them to file their replies within seven days.
The bench also asked Tata Steel to enclose the relevant portion of its resolution plan for Bhushan Steel, disclosing the proposals for financial creditors, operational creditors, secured and unsecured creditors as well as shareholders and submit an estimated deadline for the execution of its resolution.
A notice was also issued to two more parties—bhushan Steel Employees Union and Larsen & Toubro Ltd—that had raised objections against the resolution plan submitted by Tata Steel before the NCLT. The counsel appearing for Singal, U K Chaudhary argued that Tata Steel was ineligible to bid in view of Section 29A of the Ibc.chaudhary further sought setting aside of the resolution process for Bhushan Steel, arguing it was illegal.
L&T, which has a claim of over ₹900 crore against the steel maker, has moved a separate appeal against the approval granted to Tata Steel’s resolution plan, saying that it is oppressive against operational creditors.
NCLT’S principal bench on May 15 approved Tata Steel’s resolution plan promising an upfront payment of ₹35,200 crore to lenders, along with a 12.27% stake in the steel maker.
Pursuant to the order, Tata Steel has reportedly acquired a controlling stake of 72.65% in Bhushan Steel for around ₹36,400 crore. MUMBAI: Colgate-palmolive India Ltd, the Indian arm of the world’s largest toothpaste maker, on Monday reported a 32.4% jump in March quarter net profit as volumes and gross margins expanded.
Net profit rose to ₹188.77 crore in the three months ended March 31, from ₹142.58 crore a year ago, the company said in a statement to stock exchanges. Despite sales volume rising 4% from a year ago, revenue from operations declined 7.4% to ₹1,085.06 crore.
Colgate-palmolive India said sales during the quarter rose by 5.1%, when adjusted for differences in accounting for sales under the goods and services tax (GST).
A poll of 22 analysts estimated the company to post a net profit of ₹180 crore on sales of ₹1,148 crore.
The reported net profit figure includes tax reversals of ₹17.79 crore. Excluding the reversal, net profit rose 19.9%. The company said that an expansion of gross margins by 290 basis points to 65.4%, on an adjusted basis, drove profits.
The company remains focused on driving growth in key categories, Issam Bachaalani, managing director at Colgate-palmolive India said in the statement.