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Facing insolvency proceedings in the National Company Law Tribunal (NCLT), Ruias-led Essar Steel India Ltd (ESIL) on Monday sought dismissal of the application filed by its lenders led by State Bank of India (SBI) citing technical issues.
Putting across its objections on the insolvency application filed by the lenders, Essar Steel contended that the signatory of the application filed at NCLT did not have any authorisation of such powers by the chairman of the bank, in this case, it is the State Bank of India.
“The signatory of the application does not carry any such authorisation as required under Section 27 of the State Bank of India (SBI) Act. Hence, the application by SBI at NCLT is incomplete and not maintainable till the signatory is authorised," the Essar Steel counsel told the Ahmedabad Bench of NCLT chaired by Justice Bikki Raveendra Babu.
Essar Steel also sought a separate hearing on the appointment of an interim resolution professional (IRP), which, according to the ESIL counsel, should be done separately and not simultaneously with the admission of the insolvency proceedings against it.
The further hearing on the matter was placed for July 25.
International lender, Standard Chartered Bank (SCB) and SBI had independently filed applications for initiating insolvency proceedings against Essar Steel for the outstanding loan of over ₹34,000 crore from its steel plants in Gujarat.
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