AHMEDABAD: Essar Steel, which failed to get a court stay on the bankruptcy proceedings against it moved by State Bank of India, told the National Company Law Tribunal (NCLT) that the insolvency petition was incomplete and not maintainable.
The application should have been signed by the chairman of the bank and there was nothing to prove that the board of directors of the bank had authorised the chairman to initiate such proceedings, the steel companys counsel said. Absence of these two is a sufficient reason to disqualify it, he argued before the Ahmedabad bench of the NCLT.
As per Section 27 of SBI Act of 1955, specific power can be exercised only if there are specific and general directions to the chairman approved and conferred by…
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