NCLT admits SBI's IBC plea vs former Bhushan Power chairman, wife
This story was originally published at 18:04 IST on 7 October 2024
Register to read our real-time news.Informist, Monday, Oct. 7, 2024
NEW DELHI – The Delhi bench of the National Company Law Tribunal on Monday admitted petitions filed by the State Bank of India to start insolvency proceedings against Sanjay Singal and his wife Aarti Singal, former chairman and former director, respectively, of Bhushan Power and Steel Ltd. The petitions have claimed unpaid dues of INR 122.76 billion each from Sanjay and Aarti Singal, personal guarantors of loans extended to Bhushan Power over the years.
The tribunal accepted the resolution professional's report to admit the duo to the insolvency resolution process. "Accordingly, the application filed is admitted under Section 100(1) of the Insolvency and Bankruptcy Code, 2016," the tribunal said.
The interim moratorium imposed after the bank filed the application is vacated and a fresh moratorium in terms of Section 101 of the code shall commence against the due, the tribunal said. It added that the resolution professional will issue a public notice in terms of Section 102 of the code and invite claims from the creditors at large.
The due had stood personal guarantors for Bhushan Power in respect of loans availed from a consortium of banks that included State Bank of India, State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, and State Bank of Travancore. The other banks were later amalgamated into State Bank of India.
In 2017, the tribunal had started insolvency proceedings against Bhushan Power on a petition by Punjab National Bank. In 2019, it had approved the resolution plan submitted by JSW Steel Ltd for the debt-ridden company.
In 2020, State Bank of India had issued separate demand notices to the husband and wife to clear the dues of INR 122.76 billion. Upon their failure to do so, it moved the tribunal to start insolvency proceedings against them.
On Monday, shares of State Bank of India ended over 3% lower at INR 770.65 on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Rajeev Pai
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
