New Delhi, Feb 4 (IANS) The National Company Law Appellate Tribunal (NCLAT) on Tuesday reserved its judgement on JSW Steel’s aquisition of the insolvent Bhushan Power and Steel Ltd (BPSL).
A bench headed by NCLAT Chairman Justice S.J. Mukhopadhaya concluded its hearing on several petitions over BPSL’s takeover.
JSW Steel had moved the appellate tribunal seeking immunity against future litigation due to alleged fraud by former BPSL promoters.
The development comes around three months after the appellate tribunal ordered a freeze on payment by JSW Steel. The bench will decide whether to remove the stay on the Rs 19,700-crore bid and if JSW Steel can be covered under the new amendment of the Insolvency and Bankruptcy Code which grants immunity to the new management of a distressed company from proceedings against the former promoters.
In October, the NCLAT put JSW Steel’s payment to acquire BPSL on hold and asked the Enforcement Directorate (ED) to release BPSL’s attached properties. The appellate tribunal had also asked the ED not to attach any more property of BPSL without its permission.
The Enforcement Directorate, which is investigating alleged fraud committed by the debt-laden firm’s previous management, had attached the assets of BPSL, which it believes to be from proceeds of crime.
In an affidavit filed before the NCLAT, the ED has opposed JSW Steel’s immunity in the BPSL matter.