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Lenders will work out procedures to follow timelines and coordination in cases taken for resolution at the National Company Law Tribunal (NCLT). Senior public sector bank executives called Monday’s meeting a routine exercise where top bankers reviewed the progress made in work (for cases filed at NCLT). Banks will put in place necessary mechanism to ensure that the lenders do a good job. “ It was a stock-taking exercise. We want to smoothen the coordination among all the stakeholders,” said a banker. It was the first such review exercise in seven weeks after the Reserve Bank of India (RBI) set in motion an action plan on 12 big-ticket bad loan cases. On June 13, the banking regulator had asked certain banks to refer 12 non-performing accounts to the NCLT for possible liquidation process. The RBI’s internal advisory panel had recommended for reference accounts with fund and non-fund based outstanding greater than Rs 5,000 crore, with 60 per cent or more classified as non-...

The Gujarat High Court on Monday disposed of Essar Steel’s petition against insolvency proceedings initiated by its lenders after a directive by the Reserve Bank of India (RBI). This is likely to smoothen the insolvency proceedings against Essar as well as the 11 other non-performing accounts identified by the RBI. The four other steel companies on the list, however, have already said they would cooperate with lenders and not move court to stall proceedings. On July 4, Essar Steel, promoted by the Ruias, had filed a petition against the insolvency proceedings initiated against it at the National Company Law Tribunal (NCLT). Commenting on the court’s observations that the NCLT will have to decide on its own whether the insolvency petition is required to be entertained or not, Essar Steel stated in an official communiqué, “We respect the decision… (of the court) and will accordingly be raising these issues for consideration by the NCLT.” The Ahmedabad bench of the NCLT is like...

A division Bench of the Gujarat High Court on Wednesday adjourned Standard Chartered Bank’s appeal for quashing a single-judge Bench’s stay on insolvency proceedings filed against Essar Steel. The London-based lender said in its appeal, a copy of which is in possession of Business Standard, that Essar Steel had “failed to disclose” to the single- judge Bench that the bank was “neither a party to any alleged restructuring package, nor any consent has been obtained to such package”. The appeal maintained that Standard Chartered was not a member of any committee of lenders, which was being claimed to be considering Essar Steel's restructuring package. Earlier, the single-judge bench of Justice S G Shah stayed the insolvency proceedings against Essar Steel by its lender, Standard Chartered Bank, at the National Company Law Tribunal (NCLT)'s Ahmedabad bench till the next hearing on July 7. It also directed the Reserve Bank of India (RBI) to explain what it meant by the NCLT...