Essar Steel vs RBI case: Gujarat HC verdict on Monday

Justice SG Shah said that the matter bears extensive implications and effects on similar cases, where lenders are looking to recover from other defaulters.

By: ENS Economic Bureau | Ahmedabad | Published:July 15, 2017 2:56 am
In its June 13 press release, the RBI had set criteria to refer the top non-performing asset accounts to the NCLT for insolvency proceedings.

The Gujarat High Court will pronounce its judgment in the Essar Steel versus Reserve Bank of India (RBI) case on Monday, July 17, with arguments by the petitioner and respondents concluding on Friday.

On Friday, the Essar Steel counsel resumed his arguments reasserting the petition even as the court asked the RBI to provide supporting directives for its press release published on June 13 in which the central bank had directed banks to initiate insolvency procedure against a dozen stressed companies. RBI counsel Darius Khambata informed the court that the press release was a standalone document and could be taken on record.

Justice SG Shah said that the matter bears extensive implications and effects on similar cases, where lenders are looking to recover from other defaulters. As per the RBI direction, a joint lenders’ forum led by State Bank of India (SBI) initiated proceeding in the National Company Law Tribunal (NCLT) under the newly-formed Insolvency and Bankruptcy Code. Following that, Essar Steel had moved the Gujarat High Court on July 4 and managed to get a stay on all proceedings against the company at the NCLT.

In its June 13 press release, the RBI had set criteria to refer the top non-performing asset accounts to the NCLT for insolvency proceedings. Counsel for Essar Steel Mihir Thakore had challenged the criteria and the press release saying the RBI considered “irrelevant factors in determining the accounts to be referred under Insolvency and Bankruptcy Code and has ignored all relevant factors” and also violated the principles of natural justice. FE

For all the latest India News, download Indian Express App

  1. F
    Fred mathins
    Jul 15, 2017 at 3:23 am
    GOOD NEWS!!! Are you a business man? Business woman ? Artist? Politicians? Student? Do you need to Control your Family, Marriage or Love? Etc...Call Fred mathins 2348146888015 Illuminati agent to change your life with in a day!!!! And you want to become big, Powerful and famous in the world, join us to become one of our official member today. you shall be given a ideal chance to visit the illuminati and his representative after registrations is completed by you, no sacrifice or human life needed, Illuminati brotherhood brings along wealth and famous in life, you have a full access to eradicate poverty away from your life now.It only a member who is been initiated into the church of illuminati have the authority to bring any member to the church, so before you contact anybody you must be link by who is already a member, Join us today and realize your dreams. We also help out member in protection of drugs pushing, Don't failed to see the light. Money, powers, fame, and wealth
    (0)(0)
    Reply
    Express Adda