Essar Steel insolvency case lands in legal ambiguity; NCLT to hear

Standard Chartered bank has alleged bias in the process as top banks held 'illegal' meetings' but all other banks approved

Hurdles in the Essar Steel (ESIL) insolvency case before the National Company Law Tribunal’s (NCLT’s) bench at Ahmedabad continue to pile up. A hearing is slated on Wednesday. 

Last week, Standard Chartered Bank (SCB) filed a petition with the bench against the Resolution Professional (RP) appointed for the case. And, against top banks. The tribunal will also hear a batch of petitions by ESIL’s operational creditors (OCs) against the decision by the company's committee of creditors (CoC) to award the insolvent company to ArcelorMittal.

SCB's plea alleges a ‘core-committee/sub-committee’ (CC/SC) comprising four-member-lenders from the CoC held ‘illegal’ backdoor meetings prior