The Kolkata Bench of the NCLT has admitted an insolvency petition filed against Electrosteel Steels by the State Bank of India..Dhaivat Anjaria, a PwC partner has been appointed as the Insolvency Professional under Section 13 of the Insolvency and Bankruptcy Code, 2016. Anjaria will now take control over the management and charge of Electrosteel Steels..Electrosteel Steels representatives did not appear in the NCLT when the matter was mentioned in the court first on 10 July..The bench gave Electrosteel Steels another opportunity to defend itself but on 18 July, Sachchida Nand Pandey, a lawyer appearing for the company, said he had no instruction to oppose the application..Electrosteel Steels was one of the twelve NPAs, which were referred by the RBI in its press release dated 13 June 2017, which account for over 25% of the bad loans plaguing the Indian banking sector. The twelve accounts, identified by the RBI are those to which banks have an exposure of more than Rs 5,000 crore each, more than 60% of which has been recognised as NPAs..The RBI, in this press release, had asked NCLT to fast track these twelve accounts, a point which became the subject matter of litigation at Gujarat High Court. The RBI had, during the pendency of the proceedings, removed this line from its press release which asked NCLT to fast track these particular cases, simply leaving the twelve identified accounts..Electrosteel owes SBI Rs. 1405.14 crores and its collective debt is over Rs. 14,000 crores..SBI was represented through Souvik Mazumdar and Abhijit Das who in turn briefed Rishav Banerjee who argued the matter for SBI as their counsel.(Read the order)
The Kolkata Bench of the NCLT has admitted an insolvency petition filed against Electrosteel Steels by the State Bank of India..Dhaivat Anjaria, a PwC partner has been appointed as the Insolvency Professional under Section 13 of the Insolvency and Bankruptcy Code, 2016. Anjaria will now take control over the management and charge of Electrosteel Steels..Electrosteel Steels representatives did not appear in the NCLT when the matter was mentioned in the court first on 10 July..The bench gave Electrosteel Steels another opportunity to defend itself but on 18 July, Sachchida Nand Pandey, a lawyer appearing for the company, said he had no instruction to oppose the application..Electrosteel Steels was one of the twelve NPAs, which were referred by the RBI in its press release dated 13 June 2017, which account for over 25% of the bad loans plaguing the Indian banking sector. The twelve accounts, identified by the RBI are those to which banks have an exposure of more than Rs 5,000 crore each, more than 60% of which has been recognised as NPAs..The RBI, in this press release, had asked NCLT to fast track these twelve accounts, a point which became the subject matter of litigation at Gujarat High Court. The RBI had, during the pendency of the proceedings, removed this line from its press release which asked NCLT to fast track these particular cases, simply leaving the twelve identified accounts..Electrosteel owes SBI Rs. 1405.14 crores and its collective debt is over Rs. 14,000 crores..SBI was represented through Souvik Mazumdar and Abhijit Das who in turn briefed Rishav Banerjee who argued the matter for SBI as their counsel.(Read the order)
