Economic Times, citing said two people familiar with the development, reported that lenders decided to toss out the plea of Bhushan Power & Steel promoter family - the Singals; and Liberty House to re-consider their bids for the company, and decided to go ahead with handing over the firm to Tata Steel which won the bid in bankruptcy court. The sources said “Lenders will submit in sealed envelope the highest bidder to the tribunal and voting will be done following a ruling from the tribunal.”
Singals and Liberty House had appealed to lenders that they were eligible to bid for the company following a tribunal order in another case which held that the amended Insolvency and Bankruptcy Code prohibits promoters is applicable only to cases that were filed after the amendment and not before. In effect, the law is prospective and not retrospective. Since the resolution for Bhushan Power was finalised before the government amended the Insolvency and Bankruptcy Code, the promoters demanded their bid be considered.
Singal’s had pleaded that the lenders should give them an opportunity to submit a plan following an order passed by M K Shrawat that the law banning defaulting promoters to bid for their own company not be applicable in cases filed before November 23- when the amendments were made in the IBC.
In an insolvency case of Wig Associates, the tribunal ruled that “Any amendment to a statute affecting the legal rights of an individual must be presumed to be prospective unless it is made expressly or is impliedly retrospective."
Source : Economic Times