Insolvency process: Bhushan Power case faces issues over bid secrecy

London-based Liberty House, too has been claiming its bid is higher than that of the Tata's

The legal battle that has broken loose in the insolvency resolution process of Bhushan Power & Steel underlines the importance a confidentiality clause in bidding or deals involving mergers and acquisitions. The two bidders, Tata Steel and Liberty House, seem to know each other’s offer price and have been throwing that as an argument supporting their claim for bailing out the troubled lenders to the steel company.

Abhishek Manu Singhvi, the Tata Steel lawyer, last week stated in the National Company Law Tribunal that Liberty House's bid was higher by "only Rs 10 billion". The Liberty offer, he argued, came