The New Delhi bench of the National Company Law Tribunal (NCLT) on Wednesday reserved orders on two separate insolvency petitions — State Bank of India (SBI) versus Bhushan Steel and Punjab National Bank versus Bhushan Power and Steel. Privately-held Bhushan Power, which owes lenders a little over Rs 37, 000 crore did not object to the insolvency proceedings. It requested the court to ensure the company was treated as a ‘going concern’. However, Bhushan Steel, which owes banks a whopping Rs 44,447 crore, objected to the insolvency proceedings alleging SBI had inflated the dues by around Rs 100 crore.
The company’s counsel claimed 65 per cent of the debt referred to as default was in the form of working capital.
Bhushan Steel is promoted by the Singal family who collectively hold 43.74 per cent in it.
A bench headed by Justice MM Kumar observed that recovering dues was the statutory duty of the banks and, thus, there was no need for the Reserve Bank of India (RBI) to step in as banks were responsible enough. He also took at dig at the banking sector in the country, saying that only in India could a borrower take loans to make interest payments.
Bhushan Steel and Bhushan Power are among the 12 companies referred to NCLT benches across the country following an Reserve Bank of India press release.