Renaissance Steel Moves NCLT Against Electrosteel Steels Bids

Renaissance Steel Moves NCLT Against Electrosteel Steels Bids

Abhishek Dalmia’s Renaissance Steel India Pvt. Ltd on Thursday approached the Kolkata bench of the National Company Law Tribunal (NCLT) alleging Tata Steel Ltd and Vedanta Ltd are not eligible to bid for the assets of Electrosteel Steels Ltd, which are being auctioned under the Insolvency and Bankruptcy Code (IBC).

In two separate petitions, Renaissance Steel said both Tata Steel and Vedanta group were found guilty of criminal misconduct punishable with two or more years in jail.

So, under Section 29A of IBC, they are barred from bidding for stressed assets being sold under insolvency resolution.

The petitions have been admitted for further hearing, said Debanjan Mandal, partner, Fox and Mandal, the law firm representing Renaissance.

Renaissance Steel has alleged that Tata Steel UK Ltd, a subsidiary of the Indian steel maker, had pleaded guilty several times to violating the UK Health and Safety at Work Act.

“Tata Steel UK has faced multiple prosecutions, and has been convicted on each occasion,” said the petition opposing Tata Steel’s bid, adding that the offences were punishable on conviction by up to two years in jail. But the UK authorities only imposed fines.

Tata Steel declined to comment. A spokesperson for Vedanta didn’t respond to an email seeking comments till press time.

The development comes a day after Tata Steel emerged the top bidder for Bhushan Steel, India’s top auto-grade steel maker.

That bid, too, could also suffer if Renaissance Steel’s objection to its bid for Electrosteel Steels is upheld in court. Read More

Leave a Reply

Your email address will not be published.