Renaissance Steel asks NCLAT to declare Tata Steel’s bid for Electrosteel ‘ineligible’


Renaissance Steel asks NCLAT to declare Tata Steel’s bid for Electrosteel ‘ineligible’
Renaissance Steel Pvt Ltd, one of the unsuccessful resolution applicant for Electrosteel Steel Ltd, moved the National Company Law Appellate Tribunal (NCLAT) on Friday seeking a declaration that Tata Steel Ltd, another unsuccessful resolution applicant, was ineligible to participate in the resolution process for the debt ridden steel manufacturer under Section 29A of the Insolvency and Bankruptcy Code (IBC).

Renaissance Steel contends that one of the UK subsidiaries of Tata Steel had flouted the UK Health and Safety at Work Act, pursuant to which fines were imposed on it. Hence, it is ineligible under the IBC.

An NCLAT bench headed by Justice S.J. Mukhopadhyay issued notice to the resolution professional for Electrosteel and Tata Steel asking them to file their replies within seven days.

The counsel for Tata Steel submitted that such a declaration would be “infructuous” and “academic” as Tata Steel is not the highest bidder for the debt ridden steel manufacturer. Read More

Leave a Reply

Your email address will not be published.