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The NCLAT has asked Tata Steel, the resolution professional and Committee of Creditors to respond within seven days, on allegations by Neeraj Singhal that the Tata company's takeover of Bhushan Steel is against the Insolvency and Bankrupcty Code (IBC).
Neeraj Singhal is the promoter of Bhushan Steel, which has been undergoing insolvency proceedings.
On May 15, the National Company Law Tribunal had approved Tata Steel's resolution plan. Two days later, the NCLAT (National Company Law Appellate Tribunal) had accepted Singhal's plea against the takeover.
The Appellate Tribunal, which refused to stay Tata Steel's takeover of Bhushan Steel, will again hear the case on May 30.
Singhal has argued that Tata Steel's bid for Bhushan Steel is ineligible under Clause 29 of the IBC.
Meanwhile, the NCLAT will hear L&T's petition on Tuesday. The engineering giant has argued that it has an outstanding due of Rs 900 crore from Bhushan Steel. But as it has been bracketed as an "operational creditor", there has been no provision to clear its due under the resolution plan provided by Tata Steel.
L&T wants to be bracketed under the secured creditors category.
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