NCLT seeks replies to Liberty House plea over bid for Bhushan Steel

Sanjeev Gupta-led Liberty House is arguing that his company's offer got rejected without being reviewed

Sanjeev Gupta-led Liberty House moved the National Company Law Tribunal (NCLT) on Monday after the lenders rejected its bid for debt-ridden Bhushan Power & Steel.

The NCLT asked lenders and the resolution professional to file their replies by March 5, which is the next hearing date. The counsel for Liberty House argued that their plan should be considered as it might be a better offer than the other two applicants. The counsel argued that their bid was junked without opening it. The committee of creditors had rejected the bid on the grounds that it was submitted after deadline.

For Bhushan Power & Steel, Tata Steel is estimated to have offered Rs 170 billion upfront to financial creditors, against JSW Steel’s Rs 110 billion.

Abhishek Manu Singhvi, Tata Steel’s counsel, said: ‘’If Liberty’s bid is accepted, one is deliberately giving premium to dishonesty.” He said that five out of the seven requisite documents, like a certificate from a chartered accountant, were not submitted by Liberty House. He also said that Liberty House’s proposal came much after the expiry of expressions of interest invitation in October 2017.

Bhushan Power & Steel owes about Rs 450 billion to its lenders. Liberty House, worth $6.8 billion, has had its eyes set on the difficult but promising Indian market for quite some time now.