Acceptance of Liberty House bid will violate level-playing: Tata Steel to NCLT

Tata Steel today told NCLT that acceptance of UK-based Liberty House's bid for Bhushan Power and Steel would amount to violation of the level-playing field in the resolution process.

The tribunal was hearing a plea filed by Liberty House challenging the rejection its bid for Bhushan Power and Steel on account of late submission. Liberty House had moved the NCLT on February 26.

Appearing for Tata Steel, senior advocate Abhishek Manu Singhvi today submitted before the National Company Law Tribunal (NCLT) that Liberty House has also hid facts in their petition filed before it.

"Acceptance of Liberty bid will violate level playing field," Singhvi said.

Citing some emails, he further said that Liberty House was in touch with the Insolvency Resolution Professional (IRP) of Bhushan Power and Steel and can not say that it was not aware about it.

Singhvi said maximisation of bids has to be seen within parameters of rules.

Tata Steel would continue its arguments before the principal bench of NCLT tomorrow.

Earlier on March 13, NCLT had asked the Committee of Creditors of Bhushan Power and Steel not to hold their meeting that was scheduled to finalise the highest bidder for the debt-ridden firm.

The CoC last month rejected Liberty House's bid to acquire Bhushan Power and Steel Ltd, leaving Tata Steel and JSW Steel in the race for taking over the assets of the bankrupt firm.

Liberty House has submitted before the NCLT that IRP rejected its bid to acquire Bhushan Power and Steel without even opening the seal of its offer.

Bhushan Power and Steel owes about Rs 45,000 crore to its lenders.