TATA Steel Took Over Bhushan Steel: CESTAT Clarifies Appeals Are Abated Post RP Approval By NCLT Under IBC, It Becomes Functus Officio [Read Order]

Tata Steel’s takeover of Bhushan Steel has been clarified by the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), which ruled that the appeals are abated once the Resolution Plan (RP) is approved by the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC). The ruling highlights that post-approval of the RP, the legal proceedings initiated before various authorities will no longer be valid, as the RP takes precedence. This ruling sets a precedent for similar cases under IBC, ensuring that the final resolution plan supersedes any ongoing appeals. The CESTAT’s decision reinforces the importance of RP approval in insolvency cases, ensuring that disputes related to such matters are resolved effectively. Tata Steel’s acquisition of Bhushan Steel is thus solidified under the IBC framework.