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HC adjourns StanChart appeal hearing in Essar Steel insolvency to next week

London-based lender had appealed last Wednesday for the quashing, contending Essar suppressed facts

Vinay Umarji  |  Ahmedabad 

Essar

A bigger bench of the high court (HC) in Ahmedabad adjourned till the coming Monday an appeal of Bank for quashing of a single judge bench's stay on the proceedings it had filed against

The London-based lender had appealed last Wednesday for the quashing, contending Essar suppressed facts. It has said it was not a party to any revival or restructuring package or invited in any lenders' meeting by Essar Steel, unlike what the latter had claimed in its petition before the single judge, S G Shah.

Earlier, the latter had stayed proceedings filed against by StanChart at the (NCLT)'s bench in this city till the next hearing, first July 7 and then adjourned to July 12. As directed by the HC, the (RBI) had told the court it would issue a corrigendum on its June 13 circular allowing to accord priority to 12 major non-performing asset accounts set to face proceedings.

The June 13 circular reads: "The Reserve Bank, based on recommendations of (its) internal advisory committee, will accordingly be issuing directions to banks to file for proceedings under the IBC (and Bankruptcy Code) in respect of the identified accounts. Such cases will be accorded priority by the " In its hearing last Tuesday, the court had sought a clarification from on this.

The 12 NPA accounts have debt dues over Rs 5,000 crore each. Sixty per cent of the debt of these 12 was termed "bad" by banks as on March 31, 2016. The total debt of these is expected to be in excess of Rs 1.5 lakh crore.

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