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 NCLT “did not commit any error” as sales were not completed and the object was to obtain the maximisation of the assets, hence it “sees no reason to take a different view”.
Jindal Stainless Ltd (JSL) submitted its Rs 190-crore bid for Rathi Super Steel after the liquidator forwarded the application before the NCLT, seeking closure of the liquidation process and approval of terms and conditions of sale to Rimjhim Ispat and Synergy Steel.
In the e-auction, Rimjhim Ispat and Synergy Steel had emerged as the highest bidder with a Rs 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.
