Ahmedabad: On Friday, February 8, the Ahmedabad bench of the NCLT was informed by the Committee of Creditors (CoC) of the coercive means used by Standard Chartered Bank to cause undue delay in the Essar Insolvency case.
The Counsel representing the creditors accused the Bank of using illicit tactics to cause hindrance in the matter, despite not having their loan secured. Moreover, the Bank’s claim of alleged conspiracy against it with the entire resolution plan being a “big scam” was also rejected by the Counsel. It was clarified that the distribution plan was incorporated in the best interest of all creditors and no deceiving conspiracy or malicious plan was executed against the Bank.
Previously, SCB had contended the resolution plan and suggested an increase in the offer made by ArcelorMittal. The Bank claimed the procedure to being non-transparent, fraudulent and illegal, whereby SCB was not given the opportunity to be heard while considering majority. The Bank also raised contention on dismissal of its plea for an increase in ArcelorMittal’s bid.
On Tuesday, January 29, the National Company Law Tribunal (NCLT) had dismissed the proposed debt settlement made by the shareholders of Essar Steel. The bid was rejected by the Tribunal for being in violation of Section 12A of the Insolvency and Bankruptcy Code.