Debt-hit Bhushan Power and Steel hits yet another hurdle
The NCLAT on Tuesday stayed the meeting of Committee of Creditors (CoC) of Bhushan Power and Steel Ltd to vote on finalisation of bids of the debt-ridden firm.
The NCLAT on Tuesday stayed the meeting of Committee of Creditors (CoC) of Bhushan Power and Steel Ltd to vote on finalisation of bids of the debt-ridden firm. The National Company Law Appellate Tribunal (NCLAT) also pulled up the Resolution Professional (RP) of the company, Mahendra Kumar Khandelwal, for not following its previous orders to allow the representatives of operational creditors to attend the meeting.
The appellate tribunal also said that it would consider whether contempt of court proceedings should be initiated against the RP in the next hearing.
A two-member bench headed by Chairman Justice S J Mukhopadhaya directed him to be present in the next hearing.
“The CoC should not proceed with the meeting at present. If the meeting is fixed today, let it be adjourned for two days. Let the matter be listed on Friday,” NCLAT said.
It said all the parties including operational creditors should have been informed about the meeting and stayed it for not following the rules.
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The bench said RP would be personally present in the next hearing on July 20 and it will see if proceedings of contempt of court should be initiated against him or not.
The NCLAT also asked Liberty House, a resolution applicant, to submit clarification sought by the RP over its eligibility criteria under the Insolvency & Bankruptcy Code (IBC).
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