Gujarat HC dismisses Essar Steel's plea against RBI

17 July, 2017, 20:38 | Author: Brian Mcdaniel
  • Court. The court order sets the stage for Essar Steel’s creditors to proceed against the company in the National Company Law Tribunal under the Insolvency and Bankruptcy Code

The Gujarat High Court on Monday disposed of the petition moved by Essar Steel challenging the insolvency proceeding against it by Reserve Bank of India without granting any relief to the company.

Cracking down on bad loans, the RBI last month identified 12 accounts for insolvency proceedings with each of them having over Rs 5,000 crore of outstanding loans, accounting for 25 per cent of total non-performing assets (NPAs) of banks.

More companies expected to follow Essar Steel's footsteps; what does this mean for loan resolution? "It can not be held that directives of RBI under reference by impugned press release are binding upon SCB and therefore SCB is bound to consider the restructuring proposal by the petitioner, wherein petitioner has offered to start payment of dues only after 25 years and that too only with 1% interest".

The company argued before the HC that it should not be treated on par with other eleven accounts (firms) which have been closed now, while Essar Steel is still doing well with an annual turnover of Rs 20,000 crore.

That RBI's decision in picking these 12 accounts was arbitrary inasmuch as no opportunity of being heard was provided to these companies that were being referred to.

Andromeda Releases 10-Hour Trial
About four months ago a Mass Effect: Andromeda 10 hour "Play First" trial first became available for PC gamers, via Origin Access. Furthermore, it benefits from the numerous patches that Bioware has put out, thus allowing for a more polished experience.


China's Nobel Laureate dies a prisoner at 61
He was recently moved from jail to a hospital in the city of Shenyang to be treated for late-stage liver cancer. It's a huge shock for me", Liu, who is not related to the laureate, said.


Appeals Court Overturns Sheldon Silver's Conviction on Corruption Charges
He served as leader of the state Assembly from 1994 through early 2015. "Today's decision is a part of that process". Kim said that although justice will be delayed, prosecutors do not expect justice to be denied.


The ruling clears way for the central bank to start loan recovery process against Essar Steel and other defaulters under the amended banking rules that empower the RBI to tackle the country's bad debt issue by dealing directly with lenders and bring defaulters in the insolvency process.

"Only because SCB has corresponded to SBI for its proposal with reference to JLF activities, it cannot be held that SCB could not have initiated insolvency proceedings but it has done it only because of RBI guidelines by way of press release", the order stated.

The Judge also said he has asked RBI to be more careful without giving out any details.

Earlier during the hearings, the RBI had admitted an error in its June 13 press release, which mentioned that."such cases will be accorded priority by the National Company Law Tribunal". "This court is beingmisled", the RBI lawyer had said.

The RBI's counsel disputed the points raised by Essar stating that it was not true that the company was discussing restructuring of repayments with banks. Gujarat's Advocate General Kamal Trivedi appeared for Standard Chartered Bank; He was briefed by Singhi & Co.

Recommended:

  • Facebook Begins Global Rollout Of Messenger Ad Program

    Facebook Begins Global Rollout Of Messenger Ad Program

    Home screen ads on Messenger will use the same user-targeting capabilities that are already being used by Facebook and Instagram. But Facebook has at least mercifully refrained from inserting ads into your actual conversations - for the time being, that is.
    Spider-Man: Homecoming Claims Top Box Office Spot

    Spider-Man: Homecoming Claims Top Box Office Spot

    For " Homecoming ", the studio returned to Spider-Man's teenage roots, casting Tom Holland in the part. Overall, the summer box office stands at about $2.3 billion, or 8% lower than previous year .
    England on top on day two

    England on top on day two

    But from thereon it was Root who took the responsibility and saw off the threat from the Proteas bowlers. Cook had missed out in the first innings but was not about to let a second opportunity go begging.
  • Flood, flash-food watches posted for Toledo area

    Flood, flash-food watches posted for Toledo area

    At 10:14 a.m., Weather Service Doppler radar indicated thunderstorms producing heavy rain across the warned areas. Amtrak suspended Hiawatha Service between Chicago and Milwaukee just before 8 a.m. due to flooding.

    Iraqi soldiers killed in clashes near Mosul

    Iraq's Interior Ministry says more than half of all buildings in western Mosul, where the fighting was heaviest, were damaged or destroyed.
    Sen. Ted Cruz to hold health care town hall in Austin Thursday

    Sen. Ted Cruz to hold health care town hall in Austin Thursday

    Without Lee, it becomes hard to imagine a path for the legislation to pass; 50 of the 52 Senate Republicans must vote for it. On Thursday, Cruz said there could be "catastrophic" consequences for Republicans if they fail to repeal Obamacare.
  • Trump says most 'would have taken that meeting'

    Trump says most 'would have taken that meeting'

    Grassley declined to comment on whether he thought there was anything criminal in Trump Jr.'s meeting with Veselnitskaya. That email led to the June 9, 2016 meeting, at which Trump Jr. later said no meaningful information was provided.
    IPhone 8's biggest features could be disabled at launch

    IPhone 8's biggest features could be disabled at launch

    The reports have generally pointed to a possible 1-to-2 month lag in the iPhone 8's production ramp relative to the 7S ramp. Instead of the entire phone being delayed, it seems that maybe some features could be disabled at launch .
    Jerry Brown one-ups Trump on climate change with G20 announcement

    Jerry Brown one-ups Trump on climate change with G20 announcement

    Brown has said his goal was not to antagonize Trump, The Times reports , but he insisted more needs to be done on climate change. For Brown to be featured at The Global Citizen Festival is significant.
  • Eighty Beachgoers Form Incredible Human Chain To Save Drowning Family

    Eighty Beachgoers Form Incredible Human Chain To Save Drowning Family

    Simmons' post does not make clear the exact number of people saved but she also had stern words for the nearby police officers. The boys' mother, Roberta Ursrey , and her husband, nephews, mother and two daughters tried to swim out to rescue them.
    United States  says 2.7 million additional Takata air bag inflators to be recalled

    United States says 2.7 million additional Takata air bag inflators to be recalled

    Owners can go online and subscribe to Honda service manuals and find out proper procedures for many repairs. According to the automaker, the car's ignition switch was on, so the airbag would have been ready.
    Miami Beach area swimmer attacked by shark

    Miami Beach area swimmer attacked by shark

    Officials said the shark attack is the first reported at Haulover Beach. The swimmer was treated by lifeguards for bites to both his legs.


Popular

Jaguar E-Pace - prices, specs and CO2
E-PACE is the newest member to join Jaguar's SUV line-up that include all-electric I-PACE Concept and the Jaguar F-PACE. Interestingly, the E-Pace doesn't get the rising rotary gear selector that is found on the various other Jaguar models.

Republicans Consider Ban on Gender Transition Surgeries for Troops
In June, Hartzler proposed a different amendment when the armed services committee marked up the defense authorization bill. Hartzler's proposal comes in the middle of renewed debate over transgender people serving in the military.

American Airlines to end codeshare with Etihad, Qatar Airways
US carriers say the alleged subsidies distort the air travel market and could threaten American jobs. However, these claims are denied by the airlines.

The internet rallies around the fight for net neutrality
Currently, there is no indication that any will, but the net neutrality rules do not preventing these companies from doing so. This has prompted a 90-day period in which members of the public can comment on the proposed rules up until July 17.

Future of British Grand Prix in doubt after Silverstone activates break clause
Silverstone Circuit became the full-time home of the British Grand Prix in 1987, but may not be for much longer. However, Silverstone is now the only track in Great Britain that meets F1's Grade 1 standards.

Novak Djokovic parties with sexy chef amid marriage trouble rumours
He's an established top-10 player, big game, flat shots, which are pretty good for this surface where the ball bounces quite low. The 30-year-old is now set to play against Czech Tomas Berdych , who defeated Austrian Dominic Thiem , seeded No.8.

Cardinal Pell arrives in Australia to face sexual offence charges
In his role as the Vatican "Secretariat for the Economy" he is third in charge of the Church answering directly to the Pope. In October past year , Australian police said they interviewed Pell in Rome in relation to allegations of sexual assault.

Froome survives chaotic day to retain Tour de France lead
Thomas also crashed out of the Giro d'Italia in May - caused by a police motorbike - on stage nine, when he was Team Sky's race leader.

Trump hails NAFTA progress, Mexico eyes general deal by end
Last month Trump suggested covering the wall with solar panels and to use the energy to cover some of the construction costs. Trump looked to downplay the appearance of tension in their brief encounter on Friday, calling Pena Nieto a "friend".

J&K: Curfew brings normal life to standstill in valley
India and Pakistan trade blame over deadly shelling on the anniversary of the death of rebel leader, Burhan Wani. The Indian government said that Islamabad was praising a terrorist belonging to a prohibited terrorist group.