Jamshedpur: NCLAT halts implementation of Tayo Rolls resolution plan

Jamshedpur: The National Company Law Appellate Tribunal (NCLAT), Delhi, on Friday issued a notice in response to an insolvency appeal filed by Jharkhand Bijli Vitran Nigam Limited (JBVNL) against the resolution plan of Tayo Rolls Limited, a subsidiary of Tata Steel, based in Gamharia.
JBVNL had argued that a significant amendment was made to the resolution plan, granting Tayo Rolls the benefit of a direct lease on land.
However, this modification was made without referring with the Committee of Creditors (CoC) for consideration. The power distribution company also contended that the change was based on an unauthorized affidavit submitted by the resolution professional, which lacks legal validity.
According to JBVNL, Tayo Rolls owes a total outstanding amount of Rs431.25 crore, including Rs366.30 crore in certified electricity dues.
The corporation has demanded that the leased land of Tayo Rolls be transferred in its name to facilitate the recovery of pending dues.
Taking cognizance of the matter, NCLAT has stayed the implementation of the resolution plan and directed the respondents to file their replies within three weeks. A rejoinder must be submitted within a week.
The next hearing in the case is scheduled for March 5, 2025.