Hearing concludes on ineligibility petitions for Electrosteel

The hearing on two petitions for ineligibility of Tata Steel and Vedanta for takeover of Electrosteel Steels Ltd at Kolkata bench of NCLT was concluded today and the verdict is awaited.

"The hearing on both the ineligibility petitions under section 29A (which specifies grounds for ineligibility) of Insolvency and Bankrupcy Code on both Tata Steel and Vedanta had been concluded today. We are expecting a verdict in a few days," Debanjan Mandal of law firm Fox and Mandal, representing petitioner Renaissance Steel said.

There was no response from Tata Steel on the matter while Vedanta declined to comment.

Petitioner Renaissance Steel India Pvt challenged the eligibility of Vedanta and Tata Steel to bid for debt-laden Electrosteel Steels before National Company Law Tribunal (NCLT).

Renaissance Steel India Pvt Ltd had submitted a resolution plan for Electrosteel on January 4 to Dhaivat Anjaria, the resolution professional (RP).

The liquidation value of Electrosteel Steels is Rs 2,900 crore.

In a meeting on February 27, the Committee of Creditors (CoC) for Electrosteel reportedly discussed all the resolution plans, and an offer by global resources and metals conglomerate Vedanta was shortlisted.