Companies

Essar Steel insolvency proceedings: A timeline

Rutam V Vora | Updated on April 20, 2018 Published on April 20, 2018

The insolvency proceedings of Essar Steel has just been made a little longer. In its recent judgement, the National Company Law Tribunal (NCLT) has given 30 days to first round bidders Numetal Mauritius and ArcelorMittal to rectify their bids. This judgement is a major setback for JSW Steel and Vedanta, both of which had entered the fray in the second round.

Here is a look at the timeline of the insolvency proceedings against Essar Steel.

2017

May 5 Banking Regulation (Amendment) Ordinance authorises the RBI to proceed with bankruptcy proceedings by banks against defaulters.

June 13 RBI identifies 12 defaulters including Essar Steel India Ltd (ESIL) with combined bad loans worth over ₹6.14 lakh crore.

June 16 RBI asks banks through a press release to initiate insolvency proceedings against the 12 defaulters through the Insolvency and Bankruptcy Code (IBC), 2016.

June 27 Insolvency proceedings at NCLT initiated against Essar Steel.

July 4 ESIL moves the Gujarat High Court against the insolvency proceedings initiated by its lenders. High Court issues notice to RBI.

July 5 Standard Chartered appeals to Gujarat HC against the deferment of insolvency proceedings by NCLT.

July 7 The HC restrained the National Company Law Tribunal (NCLT) from conducting any further proceeding against Essar Steel till they hear RBI’s side of the story on July 12.

July 17 Gujarat HC disposes of Essar Steel petition, observes that RBI press releases should not ‘direct or guide judicial/quasi judicial authorities’.

July 18 Essar seeks time in NCLT Ahmedabad to file objections, adjourned till July 24.

July 24 Essar challenges SBI application in NCLT on technical grounds

August 2 NCLT Ahmedabad bench admits insolvency petition against Essar Steel; appoints IRP

October 20 EOIs invited by RP for Essar Steel

November 23 Disqualification clause 29(A) introduced in amended IBC

2018

February 12 First round of bids submitted by Numetal, ArcelorMittal

March RP holds Numetal and ArcelorMittal bids ineligible

March 20 Numetal move NCLT challenging rejection of bid

March 26 ArcelorMittal challenges disqualification in NCLT

April 2 Second round of bids were invited

April 19 NCLT Ahmedabad asks RP to re-examine first round of bids afresh. Says some provisions of IBC were not followed by RP in rejecting bids of first round.

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Published on April 20, 2018
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