NCLAT hope for L&T, firm to argue case on Tuesday for Bhushan Steel dues

Petition to appellate body against NCLT order of dismissal on debt to operational creditors

Through a Larsen & Toubro (L&T) application, operational creditors to Bhushan Steel have got a window of hope at the National Company Law Appellate Tribunal (NCLAT) on their dues to the insolvent company.

The appellate body has agreed to hear the L&T petition on its Rs 9.62 billion of dues from Bhushan Steel. The case will be heard on Tuesday. Bhushan Steel was taken over by Tata Steel last week, after a protracted process under the insolvency law, involving some controversy.

The Insolvency and Bankruptcy Code (IBC) makes a distrinction between financial creditors and operational creditors. Financial creditors' relationship with the entity