Bhushan Energy’s Plea to Change IRP Sustainable: NCLT


Bhushan Energy’s Plea to Change IRP Sustainable: NCLT

The National Company Law Tribunal (NCLT) on Friday held as sustainable Bhushan Energy’s (BEL) plea to change the insolvency resolution professional (IRP) from consultancy firm Deloitte as the IRP for its already-admitted parent, Bhushan Steel (BSL), is also from the same firm. The IRP had been nominated by State Bank of India. BEL argued that since a partner from Deloitte has already been appointed as the IRP for BSL, appointing another partner of the same firm in BEL “would result in compromising the independence of the IRP because there is conflict of interest between BSL and BEL in respect of tariff rates.”

The counsel appearing on behalf of SBI, however, objected to BEL’s argument, saying it was “not well founded and is liable to be rejected.” SBI had nominated Savan Godiawala from Deolitte to act as the IRP for BEL. Advocate Ranjana Roy Gawai, representing BEL, declined to comment on the issue. On July 27, the principal bench had admitted the insolvency petition filed by a consortium of lenders led by SBI against BSL and approved the appointment of Vijay Kumar V Iyer from Deloitte as the IRP. Read More…

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