NCLT puts Bhushan Power insolvency resolution on hold

The National Company Law Tribunal (NCLT) on Tuesday asked the Committee of Creditors and Resolution Professional in the Bhushan Power and Steel insolvency proceeding to not consider any bids or resolution plans while the plea of Liberty House is sub judice before the tribunal.

A three-judge bench led by Justice MM Kumar was hearing the resolution professional and committee of creditors' reply on Liberty House's plea as to why the latters’ bid for Bhushan Power and Steel should also be considered.

The UK-based steelmaker Liberty House has challenged its disqualification as a bidder for Bhushan Power, stating it was never communicated the Feb 8 deadline by which the other two bidders had submitted their resolution plans. The committee of creditors is scheduled to meet on Wednesday to consider the resolution plans of the other two successful bidders Tata Steel and JSW Steel.

The meeting, the court said, would render Liberty House's plea worthless and thus tantamount to "bias" against the latter, Justice said. "We fail to understand what is the hurry? Consideration of any plan at this stage may be prejudice against Liberty House. There is still time for the 270 days deadline as prescribed by the section 12 of IBC (Indian Bankruptcy Code)," the judge said.

The court also refused to listen to Tata Steel's plea as to why the committee of creditors meeting should go ahead as scheduled.