NCLAT to hear L&T’s plea over recovery of dues from Bhushan

The National Company Law Appellate Tribunal (NCLAT) on Tuesday agreed to hear the petition by Bhushan Steel’s operational creditor Larsen and Toubro Ltd (L&T), challenging an National Company Law Tribunal (NCLT) order on the recovery of its ₹962 crore dues from the insolvent company on priority.

The National Company Law Tribunal had earlier dismissed the L&T plea seeking higher priority in the recovery of dues over Bhushan Steel’s secured creditors, while approving the resolution plan submitted by Tata Steel Ltd.

Subsequently, the engineering and construction major had moved the appellate tribunal.

The NCLAT bench, headed by justice S J Mukhopadhyay, issued notices to the resolution professional, the committee of creditors (CoC) to Bhusan Steel and Tata Steel, which won the bid for the debt-laden company, and asked them to file their replies by May 28.

Appearing for L&T, senior counsel Mukul Rohatgi raised objections to Tata Steel’s resolution plan for being “oppressive” to it. “The resolution professional admitted my claim, but I got nothing (in the approved resolution plan),” said Rohatgi.

On May 15, the NCLT’s principal bench had approved Tata Steel’s resolution plan, which promises an upfront payment of ₹35,200 crore to Bhushan Steel’s lenders, besides picking up a 12.27% stake in the steel maker.

NEWDELHI: