Ahmedabad: The Gujarat High Court on Monday dismissed Essar Steels plea against the RBI directive to the banks to start insolvency proceedings against it, refusing to grant any relief to the steel major.
A bench of Justice S G Shah pronounced its verdict on the Essar Steel plea and refusing to accede to it, said its petition stands disposed of.
The steel company’s debt has increased to over Rs 42,000 crore.
Essar Steel had moved the high court challenging the RBI’s 13 June circular asking the banks to initiate action against the company and eleven other accounts (companies) with over Rs 5,000 crore of outstanding loans each under the Insolvency and Bankruptcy Code (IBC).
Essar’s contention was that this directive was improper in its case,…
Read the full article at: http://www.firstpost.com/business/npa-battle-gujarat-high-court-junks-essar-steel-plea-against-rbis-insolvency-order-3825517.html