Title: NCLAT turns down Tata Steel's plea for Bhushan Power & Steel
The National Company Law Appellate Tribunal on February 4 turned down Tata Steel's request to consider its bid as the 'most legitimate" one for Bhushan Power & Steel.
It now makes JSW Steel the favourite to bag the insolvent company, cementing its position as the country's largest steelmaker. Bhushan Power has a capacity to make 3.5 million tons of steel a year.
JSW Steel has a capacity to produce 19 million tons of steel a year as compared to Tata Steel's 18 million tons, in India.
Tata Steel had moved the tribunal after Bhushan Power's lenders agreed to consider a competing bid by Liberty House, which the Tata company said had come into the race past the deadline.But the Tribunal, in its order, upheld the lenders' decision.
JSW Steel had in August surprised everyone by upping its bid to Rs 19,700 crore against Tata Steel's Rs 17,000 crore and Liberty House's Rs 18,500 crore bids.
Bhushan Power & Steel, which was owned by the Delhi-based Singhal family, has a debt of over Rs 45,000 crore.
JSW Steel now needs to get the nod from NCLT for its bid.
Tata Steel is yet to disclose if it will contest today's decision.
Sanjay Singhal has also moved the courts, under section 12A of the Insolvency and Bankruptcy Code. The section allows for the withdrawal of a resolution case from the courts if agreed to by 90 percent of the lenders. Singhal has promised to pay back Bhushan Power's Rs 47,000 crore debt.