NCLAT allows bidders of Bhushan Power to revise offers by Monday

The National Company Law Appellate Tribunal today allowed all three bidders for debt-ridden Bhushan Power & Steel -- Tata Steel, Liberty House and JSW -- to file revised offers by August 6, a day after lenders picked the Tata Group company as the highest bidder.

Passing an interim order, the appellate tribunal said that all the three contenders could upgrade their offer.

The NCLAT was hearing a plea filed by Tata Steel challenging the revision of bid by JSW Steel on July 27 ahead of the meeting of the Committee of Creditors (CoC) to finalise vote on offers for the debt-ridden company.

The CoC in its meeting yesterday selected Tata Steel as the highest bidder (H1) for Bhushan Power & Steel (BPSL).

Meanwhile, the NCLAT today directed the Committee of Creditors (CoC) to take a decision over the revised bids and keep it in a sealed cover.

"All resolution applicants can submit their revised offer by Monday, said a NCLAT bench headed by Chairman Justice S J Mukhopadhaya.

The bench said that the bidders can only change the financial part of the bid.

The NCLAT has directed the matter to be listed on August 17 for next hearing.

During the proceedings, senior advocate Abhishek Manu Singhvi appearing for Tata Steel submitted that the CoC has selected it as H1 in a meeting held yesterday and lenders should be allowed to proceed to vote over the existing proposals.

However, this was objected by other parties.

The NCLAT last month had vacated its stay and asked the CoC to consider resolution plans submitted by three firms -- Tata Steel, Liberty House and JSW Steel. The tribunal on July 20 gave a go-ahead to the CoC meeting, directing it to finalise a bid for the company.

However, JSW Steel revised up its offer from Rs 11,000 crore to Rs 18,000 crore ahead of the CoC meeting.

Tata Steel put in a bid of Rs 17,000 crore.

Following the CoC picking Tata Steel as H1 bidder, UK-based Liberty House in a letter to the creditors panel and resolution professional alleged that CoC has not been fair to the UK-based firm while evaluating its bid for BPSL, sources said.

Liberty House alleged that "despite Liberty House bid provided superior recovery to the financial lenders and submitted firm financial commitment letters, CoC scored the company not fairly", a source privy to the development said.

A Liberty House spokesperson declined to comment on the matter.

Resolution Professional (RP) Mahender Kumar Khandelwal said he had no comments to offer as the matter was subjudice.

Bhushan Power and Steel owes about Rs 45,000 crore to its lenders. It was among the 12 non-performing accounts referred by the RBI for NCLT proceedings.