The National CompanyLaw Appellate Tribunal(NCLAT) today directed that status quo be maintained in the case pertaining to the sale of debt ridden Electrosteel Steelsto Vedanta Ltd.
NCLAT direction came over a petition filed by Renaissance Steelwhich saw its resolution application being rejected by the Committee Of Creditors(CoC) of Electrosteel Steels
A two member bench of the Tribunalheaded by ChairmanJustice S J Mukhopadhaya admitted Renaissance Steel's plea and issued notices to Vedanta and its lenders.
In the pendency of the appeal, the parties and the adjudicating authority will maintain status quo, the Tribunalsaid.
The appellate Tribunalhas directed them to file their replies with 10 days and the matter to be listed on May 17.
Counselappearing for Renaissance submitted before NCLAT that Vedanta is not eligible to bid for Electrosteel under section 29 A of the Insolvency & Bankruptcy Code.
According to the Counselthe Renaissance bid was higher than the Rs 5,320 crore bid accepted the CoC of Electrosteel Steel
Last month, the Kolkata bench of the National Company Law Tribunal(NCLT) had cleared Vedanta's Rs 5,320-crore resolution plan for Electrosteel, rejecting objections by Renaissance Steel
Electrosteel Steelsowes lenders more than Rs 13,000 crore, of which about Rs 5,000 crore is to State Bank Of Indiaalone.
Renaissance Steel, which was one of the resolution applicants for Electrosteel Steels, had contested that Vedanta and Tatas were not eligible to bid.
Electrosteel operates an integrated Steel Manufacturing Facilitynear Bokaro, Jharkhandwhich has a capacity of 1.5 million tonnes per annum.
The Reserve Bank Of Indiahad in June last year identified 12 large corporate accounts for insolvency resolution, including that of Electrosteel Steels
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