The Principal Bench of the National Company Law Tribunal (NCLT) today stayed the meeting of Bhushan Power & Steels’ creditors committee (CoC)..The (postponed) meeting, which was scheduled for tomorrow, was for the purpose of officially selecting the successful resolution applicant, Tata Steel..Bhushan’s case was admitted by the Principal Bench on July 26, 2017. The dates for submitting resolution plans had been postponed more than once, and the final deadline for submission was February 8, 2018. JSW and Tata Steel were the two resolution applicants, who submitted their proposals within time. Liberty House, however, submitted its proposal on February 20, 2018, just a day before the CoC was to convene for consideration of the resolution plans..However, due to belated filing, the CoC, on February 21, decided to disregard the plan submitted by Liberty House, and Tata Steel emerged as the winner..Liberty House, aggrieved by the decision of the CoC to reject its resolution plan, approached the NCLT praying for setting aside the decision of the CoC dated February 21. As an interim measure, Liberty had sought to restrain the CoC from taking any final decision without considering Liberty’s bid as well..No interim stay was granted until today, when the NCLT was apprised of the CoC meeting to be held tomorrow..Upset with this development, the Bench of M.M Kumar and S.K. Mohapatra passed an interim order, staying any further CoC meetings for announcing the successful resolution applicant. The Bench observed,.“At first blush, we are constrained to observe that as a matter of propriety deference to court hearing in a sub judice matter should have been shown by not taking up the agenda of resolution plan of any other applicant. We do not understand the stance of the CoC or RP. Accordingly, we direct the RP and CoC not to proceed with consideration of resolution plan of any other entity as the matter is sub judice before us. .The consideration of any resolution plan at this stage may result into prejudice to the right of the applicant especially when there is still time as the period of 270 days is to expire on 22.04.2018. In any case, the period which is consume in litigation would not be a part of the period prescribed for CIRP under the IBC. ”.Senior Counsels Anand Chhiber and A.S Chandhiok, along with Gaurav Mankotia, Krishnendu Datta and Prachi Johri appeared for Liberty House..Senior Counsel Arun Katpalia appeared for the Resolution Professional, briefed by Shardul Amarchand Mangaldas..Senior Counsel Ramji Srinivasan appeared for the CoC, briefed by Cyril Amarchand Mangaldas..(Image taken from here)
The Principal Bench of the National Company Law Tribunal (NCLT) today stayed the meeting of Bhushan Power & Steels’ creditors committee (CoC)..The (postponed) meeting, which was scheduled for tomorrow, was for the purpose of officially selecting the successful resolution applicant, Tata Steel..Bhushan’s case was admitted by the Principal Bench on July 26, 2017. The dates for submitting resolution plans had been postponed more than once, and the final deadline for submission was February 8, 2018. JSW and Tata Steel were the two resolution applicants, who submitted their proposals within time. Liberty House, however, submitted its proposal on February 20, 2018, just a day before the CoC was to convene for consideration of the resolution plans..However, due to belated filing, the CoC, on February 21, decided to disregard the plan submitted by Liberty House, and Tata Steel emerged as the winner..Liberty House, aggrieved by the decision of the CoC to reject its resolution plan, approached the NCLT praying for setting aside the decision of the CoC dated February 21. As an interim measure, Liberty had sought to restrain the CoC from taking any final decision without considering Liberty’s bid as well..No interim stay was granted until today, when the NCLT was apprised of the CoC meeting to be held tomorrow..Upset with this development, the Bench of M.M Kumar and S.K. Mohapatra passed an interim order, staying any further CoC meetings for announcing the successful resolution applicant. The Bench observed,.“At first blush, we are constrained to observe that as a matter of propriety deference to court hearing in a sub judice matter should have been shown by not taking up the agenda of resolution plan of any other applicant. We do not understand the stance of the CoC or RP. Accordingly, we direct the RP and CoC not to proceed with consideration of resolution plan of any other entity as the matter is sub judice before us. .The consideration of any resolution plan at this stage may result into prejudice to the right of the applicant especially when there is still time as the period of 270 days is to expire on 22.04.2018. In any case, the period which is consume in litigation would not be a part of the period prescribed for CIRP under the IBC. ”.Senior Counsels Anand Chhiber and A.S Chandhiok, along with Gaurav Mankotia, Krishnendu Datta and Prachi Johri appeared for Liberty House..Senior Counsel Arun Katpalia appeared for the Resolution Professional, briefed by Shardul Amarchand Mangaldas..Senior Counsel Ramji Srinivasan appeared for the CoC, briefed by Cyril Amarchand Mangaldas..(Image taken from here)
