JSW Steel will move the National Company Law Appellate Tribunal (NCLAT) on Friday to seek immunity from the ongoing criminal fraud cases against Bhushan Power and Steel Ltd (BPSL).
JSW Steel is the new owner of Bhushan Power after it emerged the top bidder through the insolvency process. JSW Steel will also appeal to retain the profit made by Bhushan Power and Steel in its books during the last two years of insolvency period, said legal sources close to the company.
Earlier this week, the National Company Law Tribunal approved the ₹19,700-crore bid placed by JSW Steel but directed the company to seek relief from ongoing cases from the competent authority.
Various banks including Punjab National Bank and Allahabad Bank have filed cases against BPSL for laundering ₹5,500 crore illegally through its subsidiaries.
Though the government has clarified that Insolvency and Bankruptcy Code will prevail over other law, the recent Court judgements were in contrary.
It will also be interesting to see whether the financial creditors, who are in a hurry to close the long-drawn insolvency case, will agree to give the insolvent company’s profit to JSW Steel.
Source- Business Line.