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Essar Steel suppressed facts: SBI to Gujarat High Court on insolvency case

The RBI and SBI counsels also sought discontinuance of the interim relief offered to Essar Steel

Vinay Umarji  |  Ahmedabad 

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Terming Essar Steel’s against the “futile”, lead lender State Bank of India’s counsel told the on Thursday that the borrower company was aware and had agreed to the proceedings in the June 22 joint lenders’ forum (JLF) meeting.

Both the Reserve Bank of India and counsels on Thursday argued that had suppressed facts that it was taken by surprise by the RBI’s June 13 press release amid debt restructuring talks with banks. 

had accepted in the meeting that can go to National Company Law Tribunal (NCLT) for insolvency proceedings, and this has been kept from the court and is sufficient to show the door and dismiss its petition,” the counsel argued.

The and counsels also sought discontinuance of the interim relief offered to to which the latter responded with counter arguments, which will continue till July 14. The hearing for admission of against has been deferred to early next week by the

In his arguments, the counsel narrated a set of chronological events from June 15 when the wrote to on convening a JLF meeting on June 22 till the latter’s subsequent letters to its lender. It added that eight high ranking officials of Essar Steel, including Essar Group Chief Executive Officer Prashant Ruia, were present at the June 22 meeting. 

The counsel told the court that after the meeting, wrote to and accepted in its presentation made to the JLF that it would “participate in with the NCLT” and had requested for an insolvency resolution professional to work “seamlessly with in a cohesive manner”.

First Published: Fri, July 14 2017. 00:30 IST