A division bench of Gujarat High Court headed by Chief Justice R S Reddy adjourned the hearing on a petition moved by Standard Chartered Bank challenging the order of a single judge bench of HC that stayed the insolvency proceedings initiated against Essar Steel India Limited (ESIL) by the bank before the National Company Law Tribunal (NCLT) to July 11.
The matter pertains to the insolvency proceedings initiated by SCB against ESIL before NCLT under the provisions of the Insolvency and Bankruptcy Code, 2016 following a direction in that regard from the Reserve Bank of India dated June 13, 2017.
Aggrieved by the directions of the RBI and the insolvency proceedings initiated against it by SCB, ESIL had approached HC. One of the contentions of ESIL is that it has paid almost Rs 3,467 crore in last year and as many as 4,500 employees are working with the company and that it is doing well since last one year and would be revived in view of serious effort of revival by the company.
On July 4, the single judge bench of Justice S G Shah had ordered to stay the proceedings before NCLT and kept ESIL’s petition for further hearing on July 7 while also issuing notices to all the respondents to the petition including RBI.