NCLT refuses petition against India Steel

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NCLT refuses petition against India Steel

The National Company Law Tribunal has refused to admit an insolvency petition filed by India Resurgence Asset Reconstruction Company, a joint venture between Piramal Enterprises and Bain Capital, against Indian Steel Corporation, calling it “defective”.

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MUMBAI: The National Company Law Tribunal has refused to admit an insolvency petition filed by India Resurgence Asset Reconstruction Company, a joint venture between Piramal Enterprises and Bain Capital, against Indian Steel Corporation, calling it “defective”.

The asset reconstruction company (ARC) had approached the Mumbai bench of the NCLT, claiming that the Gujarat-based maker of cold rolled coils and sheets had failed to pay Rs 1,487.59 crore of debt as on September 30, 2019. The ARC had acquired the debt in May last year from State Bank of India.

Indian Steel Corp owed SBI and its former associate banks ₹1,829 crore. The state-run lender, which had declared the assets as non-performing in May 2016, had sold the loans for ₹362 crore.

After hearing arguments from both parties, the bench said on Friday that there was no document placed on record acknowledging the liability in the three-year period commencing from December 31, 2013, which would have the effect of extending the period of limitation — the period within which legal action could be initiated or a right enforced.

“The petition filed by the financial creditor (India Resurgence ARC) is, therefore, defective to the extent indicated,” the order by judges Rajasekhar VK and Ravikumar Duraisamy said.

Source- Economic Times.