NCLT nod to initiate insolvency against Bhushan Energy

The National Company Law Tribunal (NCLT) has directed initiating insolvency proceedings against Bhushan Energy Ltd after admitting a plea from the country's largest lender State Bank of India.  A two-member bench of NCLT has appointed Navneet Kumar Gupta as the interim resolution professional (IRP) to initiate insolvency proceedings. Bhushan Energy Ltd, the corporate debtor, had a default of Rs 494.09 crore as on October 31, 2017. "... We accept the appointment of Mr Navneet Kumar Gupta to act as IRP," said the NCLT bench comprising President M M Kumar and Deepa Krishan.  The tribunal had directed IRP to perform his functions "religiously and strictly" and directed all the company personnel to cooperate with him.  "It is further made clear that all the personnel connected with the corporate debtor, its promoters or any other person associated with the management of the corporate debtor are under legal obligation to extend every assistance and cooperation to the IRP as may be required by him in managing affairs of corporate debtor," said NCLT. It further said that if there is any violation, IRP would be "at liberty to make appropriate application before this tribunal." During the proceedings, counsel appearing on behalf of Bhushan Energy opposed it and contended that the petition was not maintainable because it has not been filed by competent authority. He contended that the Chairperson of SBI cannot delegate any authority to other officers to file a petition under IBC Code. Rejecting it, NCLT said that the objections does not warrant acceptance and the same is liable to be overruled.