Liberty House approaches NCLT on rejection by Bhushan’s Creditors Committee

The NCLT on Monday asked Bhushan Power & Steel’s Committee of Creditors (CoC) to submit its reply to the petition filed by UK-based Liberty House on Friday..Liberty House, aggrieved by the decision of the CoC to reject its resolution plan due to belated submission, approached the NCLT praying for setting aside the decision of the CoC dated 21.02.2018. As an interim measure, Liberty has sought to restrain the CoC from taking any final decision without considering Liberty’s bid as well..The revised deadline for submission of resolution plans was 08.02.2018..Liberty has submitted that it had expressed interest in Bhushan right from November, 2017 pursuant to which the Resolution Professional even offered for a site visit. Liberty, in its petition, submits that,.“In the meantime, whilst it was in the midst of putting finishing touches to its resolution plan, the Applicant came to know that the deadlines for submission of resolution plans, which had been extended from time to time, was stipulated on 08.02.2018”.Although filed after the deadline, the resolution plan was filed a day before the CoC convened for considering the resolution plans. Liberty is keen on pursuing an argument which revolves around its plan being superior to the other contenders, and doesn’t see merit in its rejection for mere technical failure..Liberty has further submitted that the deadlines put by CoC are not sacrosanct but only procedural in nature to aid the insolvency resolution process..“Since such deadlines are not envisaged under the IBC or under the regulations made thereunder, procedural delays should not be permitted to have precedence over substantial considerations of achieving the best value through the insolvency resolution process”, submits Bhushan..Representing Liberty, Senior Advocate Anand Chhibbar said,.“Time Line in the interest of creditors for maximisation of value of corporate debtor cannot be sacrosanct and committee of Creditors should have considered the resolution plan of Liberty”.Whereas Senior Advocate Abhishek Manu Singhvi on behalf of Tata Steel has objected to the application contending itself to be the successful applicant..Senior Advocate Arun Katpalia appeared for the Resolution Professional and Senior Advocate Ramji Srinivasan appeared for the CoC..(Image taken from here)