Gujarat High Court dismisses Essar Steel petition

RBI to ask banks to begin bankruptcy process against 12 top defaulters

RBI to ask banks to begin bankruptcy process against 12 top defaulters

Essar Steel had moved the high court against Reserve Bank of India (RBI) for initiating insolvency procedure against it.

On its part, the RBI contested in the court that it is not singling out Essar Steel for insolvency proceedings, and that all the big loan defaulters with outstanding loans above Rs 5,000 crore would be subject to the same. Essar Steel also said that whereas other companies had shut shop, Essar Steel was still functional with an annual turnover of Rs 20,000 crore. Essar Steel's counsel Mihir Thakore had argued that the SBI and other lender banks under the Joint Lenders Forum may not have chose to approach the National Company Law Tribunal (NCLT) for insolvency proceedings had the RBI not issued such a circular.

Earlier this month, Essar Steel moved Gujarat High Court challenging bankruptcy proceedings initiated by Standard Chartered against it.

Essar Steel had argued that the RBI circular released on June 13 was improper and the company was already in advanced stages of restructuring its loan portfolio.

Tribunal rejects Macquarie Bank’s suit against Uttam Galva unit
Gujarat High Court dismisses Essar Steel's plea against RBI; insolvency process to continue

The National Company Law Tribunal has dismissed a money recovery suit filed by Australian lender Macquarie Bank Ltd against a unit of loss-making Uttam Galva. It had said it was in talks with banks about restructuring repayments.

On June 13, RBI through its Internal Advisory Committee (IAC) recognised 12 accounts for resolution under Insolvency & Bankruptcy code (IBC). Today's verdict means that lenders, led by State Bank of India (SBI), can begin bankruptcy proceedings under the NCLT against the company.

That RBI's decision in picking these 12 accounts was arbitrary inasmuch as no opportunity of being heard was provided to these companies that were being referred to. Rs 31,671 crore of the total sum had been deemed non-performing on March 31, 2016. "This court is beingmisled", the RBI lawyer had said. While arguing before the court, the RBI counsel had informed the court that these 12 NPA accounts represent 25 per cent of the total NPA of Rs. 7,50,000 crore, which forms 5 per cent of the country's GDP.

NBA Summer League 2017: Scores and Highlights from Sunday's Las Vegas Results
With no draft pick, there is no reason for the Lakers to shoot for their first playoff appearance in what will be five years. Ball's father, LaVar Ball , is the founder and CEO of the sports apparel company Big Baller Brand, launched in 2016.

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