With Rs 1,000 cr at stake, Tata Steel moves SC in Bhushan Steel case

economictimes.indiatimes.com:

Bhushan Steel in 2018, has challenged the Delhi High Court order regarding an avoidance application in the Supreme Court. The division bench stated that Tata Steel cannot benefit from the amounts received, and those benefits of about Rs 1,000 crore should be appropriated to the creditors, according to two lawyers aware of the development. Tata Steel is challenging the January 13 order where the Delhi High Court directed the National Company Law Tribunal (NCLT) to proceed with the hearing of the avoidance application but said the amount recovered can be distributed amongst the secured creditors in accordance with law as determined by the NCLT. The Supreme Court’s decision in this case will have significant implications for the resolution process and the treatment of avoidance transactions in insolvency cases including Srei, which is undergoing in-court restructuring and has reported fraudulent transactions of Rs 13,000 crore. According to a report by the Insolvency and Bankruptcy Board of India, 777 applications regarding avoidance transactions worth Rs 2.2 lakh crore have been filed with insolvency tribunals at various levels until March 2022. The Supreme Court heard the matter on Friday and the next hearing could be after 6-8 weeks, a lawyer said. A Tata Steel spokesperson said that the company has filed a special leave petition (SLP) before the Supreme Court against the Delhi High Court judgment dated January 13, 2023. The said SLP was listed before Supreme Court on July 7, 2023.

Appellate Tribunal stays NCLT order to admit DB realty for insolvency

While the January order is a relief for Tata since earlier in an order on November 26, 2022, the NCLT had held that an application filed for avoidance