AHMEDABAD: The Gujarat High Court dismissed Essar Steels plea against the Reserve Bank of India directive asking lenders to initiate bankruptcy proceedings against the debt-laden company, observing that the regulator and banks are empowered to do so, giving a boost to the governments efforts to clean up the countrys bad-loan mess.
But the court cautioned RBI against encroaching upon the judiciarys territory as a press release it issued previously appeared to be in form of a directive to National Company Law Tribunal (NCLT). RBI has since removed the reference in the reissued press release.
The court dismissed arguments that restructuring under the Insolvency and Bankruptcy Code (IBC) would lead to disruptions in the companys operatio…
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