The case involves Letters Patent Appeals (LPA 37/2021 and LPA 43/2021) filed by Tata Steel BSL Ltd. and Union of India, respectively, challenging the judgment dated 26.11.2022 in W.P.(C) No. 8705 of 2019. The Single Judge had ruled that an application under Section 43 of the Insolvency and Bankruptcy Code (IBC) for avoidance of preferential transactions cannot continue after the Corporate Insolvency Resolution Process (CIRP) concludes. The appeals seek to overturn this decision.
State Bank of India initiated CIRP against Bhushan Steel Limited under Section 7 of IBC due to default in credit facilities. NCLT admitted Bhushan Steel to CIRP on 2017-07-26, appointing Mr. Vijay Kumar Iyer as Interim Resolution Professional. A public announcement was made, inviting claims. The Committee of Creditors (CoC) confirmed Mr. Iyer's appointment on 2017-08-24. Tata Steel Ltd.'s resolution plan was approved by the CoC on 2018-03-20. On 2018-03-28, the RP filed Tata Steel's resolution plan with NCLT. Deloitte, the Forensic Auditor of Bhushan Steel, submitted a report on 2018-04-03, revealing suspect transactions, including potential excess lease payments, preferential credit, excess payments to manpower companies, and uncontracted interest payments. One
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NCLT admitted…
CoC approved the…
The case involves Letters Patent Appeals (LPA 37/2021 and LPA 43/2021) filed by Tata Steel BSL Ltd. and Union of India, respectively, challenging the judgment dated 26.11.2022 in W.P.(C) No. 8705 of 2019. The Single Judge had ruled that an application under Section 43 of the Insolvency and Bankruptcy Code (IBC) for avoidance of preferential transactions cannot continue after the Corporate Insolvency Resolution Process (CIRP) concludes. The appeals seek to overturn this decision.
State Bank of India initiated CIRP against Bhushan Steel Limited under Section 7 of IBC due to default in credit facilities. NCLT admitted Bhushan Steel to CIRP on 2017-07-26, appointing Mr. Vijay Kumar Iyer as Interim Resolution Professional. A public announcement was made, inviting claims. The Committee of Creditors (CoC) confirmed Mr. Iyer's appointment on 2017-08-24. Tata Steel Ltd.'s resolution plan was approved by the CoC on 2018-03-20. On 2018-03-28, the RP filed Tata Steel's resolution plan with NCLT. Deloitte, the Forensic Auditor of Bhushan Steel, submitted a report on 2018-04-03, revealing suspect transactions, including potential excess lease payments, preferential credit, excess payments to manpower companies, and uncontracted interest payments. One
…NCLT admitted…
CoC approved the…