Appellate tribunal NCLAT has upheld the NCLT order to allow Jindal Stainless to participate in the auction of Rathi Super Steel even after a bidder was selected. The NCLAT said “The Adjudicating Authority NCLT did not commit any error in taking note of the offer made by Respondent No 1 JSL who made an offer of initial INR 190 crore and revised offer was INR 201 crore, much higher than the one on which Appellant was declared successful bidder.”In the e-auction, Rimjhim Ispat & Synergy Steel had emerged as the highest bidder with INR 177.50 crore offer for Rathi Super Steel as a going concern and a letter of intent was also issued to the company on July 1, 2021.However, on October 3, 2021, JSL approached the NCLT and filed an application for consideration of its bid for acquiring Rathi Super Steel as a going concern. JSL had offered INR 190 crore payable within 90 days from acceptance of the bid. On this the Delhi-based Principal Bench of the NCLT had on September 28, 2022, directed JSL to deposit EMD of INR 50 crore within three days of the pronouncement of order. The NCLT further directed to proceed to hold another auction between successful bidder Rimjhim Ispat and the other two bidders namely Adya Oversees and Bansal Wire Industries within seven days of this order. Moreover, the insolvency tribunal had also fixed a reserve price of INR 201 crore for the auction and said if JSL fails to fulfill the pre-deposit condition then the liquidator can confirm the sale to the highest bidder Rimjhim Ispat and proceed to collect the balance amount. This was challenged by Rimjhim Ispat and Synergy Steel before the appellate tribunal, which passed an interim order adjourning the auction for 15 days.
Appellate tribunal NCLAT has upheld the NCLT order to allow Jindal Stainless to participate in the auction of Rathi Super Steel even after a bidder was selected. The NCLAT said “The Adjudicating Authority NCLT did not commit any error in taking note of the offer made by Respondent No 1 JSL who made an offer of initial INR 190 crore and revised offer was INR 201 crore, much higher than the one on which Appellant was declared successful bidder.”In the e-auction, Rimjhim Ispat & Synergy Steel had emerged as the highest bidder with INR 177.50 crore offer for Rathi Super Steel as a going concern and a letter of intent was also issued to the company on July 1, 2021.However, on October 3, 2021, JSL approached the NCLT and filed an application for consideration of its bid for acquiring Rathi Super Steel as a going concern. JSL had offered INR 190 crore payable within 90 days from acceptance of the bid. On this the Delhi-based Principal Bench of the NCLT had on September 28, 2022, directed JSL to deposit EMD of INR 50 crore within three days of the pronouncement of order. The NCLT further directed to proceed to hold another auction between successful bidder Rimjhim Ispat and the other two bidders namely Adya Oversees and Bansal Wire Industries within seven days of this order. Moreover, the insolvency tribunal had also fixed a reserve price of INR 201 crore for the auction and said if JSL fails to fulfill the pre-deposit condition then the liquidator can confirm the sale to the highest bidder Rimjhim Ispat and proceed to collect the balance amount. This was challenged by Rimjhim Ispat and Synergy Steel before the appellate tribunal, which passed an interim order adjourning the auction for 15 days.
