Wednesday, January 17, 2018
News

Gujarat HC dismisses Essar plea challenging insolvency proceedings (Lead)

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

Ahmedabad | Monday, 2017 6:15:05 PM IST
 
The Gujarat High Court on Monday dismissed Essar Steel's writ petition challenging the RBI directive to a consortium of banks led by the SBI to initiate insolvency proceedings against the company for its high non-performing assets.

Justice S.G. Shah issued an oral order stating that no relief could be granted to the steel major. The court's detailed order was expected later.

Essar Steel, in its July 4 petition, challenged the Reserve Bank of India's (RBI) direction to banks to refer cases of 12 companies, including Essar, with high NPAs directly to the National Company Law Tribunal (NCLT) and initiate insolvency proceedings.

The central bank's June 13 directive was issued through a press release.

Essar Steel had a debt of Rs 45,655 crore, of which Rs 31,671 crore had turned non-performing assets for banks by March 31, 2016. This increased to Rs 32,864 crore by March 31 this year.

The company claimed that unilateral action was being initiated when it was in a restructuring mode and objected that it was being clubbed with the other 11 major defaulting firms. The steelmaker also alleged that it was being singled out.

The RBI's counsel disputed both points stating that it was not true that the company was discussing restructuring of repayments with banks, while insolvency proceedings would in fact help the company to shape up and not close it down.

--IANS desai/ag/mr

( 241 Words)

2017-07-17-17:48:12 (IANS)

Watch News Videos

 
  LATEST COMMENTS (0)
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
TRENDING TOPICS
 
 
 
CITY NEWS
MORE CITIES
 
MORE BUSINESS NEWS
Hike 'Total' to let users access service...
Google expands further in China, opens n...
Key Indian equity market indices trading...
RentSher launches operations in Mumbai, ...
London based investment banking firm app...
Equity indices trade with gains, Sensex ...
More...
 
INDIA WORLD ASIA
Pak PM must back his claim on Hafiz Saee...
One killed in car-truck collision in Del...
First anniversary of pro-Jallikattu prot...
Chennai Oil Market Rates...
Goa Govt forms advisory & monitoring com...
As PM2.5 emission norms kick in, threat ...
More...    
 
 Top Stories
9 killed in Myanmar police firing... 
Bitcoin falls over 20% in Asia over... 
Failure has made me stronger, says ... 
Galaxy On7 Prime with 'Samsung Mall... 
Countries that back terror must be ... 
'The Flash' may find helmers in 'Sp... 
No-fishing zones may help endangere... 
ICC U-19 WC: Aditya Thakare in as c...