New Delhi: Bhushan Energy on Wednesday submitted its objection before NCLT against the 25th November insolvency application moved against it by State Bank of India for recovery of Rs490 crore.
Bhushan Energy stated that SBI’s application under Insolvency and Bankruptcy Code was incomplete and immature.
“The application is incomplete and should be rejected because it was not signed by the appropriate authority,” pleaded counsel for Bhushan Steel.
“Only authorized person can initiate and file an application,” the counsel said while arguing that there are no specific provision under law that give power to the Chairman to sign such an insolvency application, let alone delegate it to other officer.
SBI counsel referred this as a “non-issue”. SBI Act gives power to chairman to exercise “all such powers” to perform “all such functions”, counsel for SBI clarified.
A second objection was raised on behalf of Bhushan Energy that the debt had not become payable at the time of initiation of insolvency proceedings in November. The counsel pointed out that as per a RBI circular released earlier this year, an insolvency proceeding could be initiated only after an attempt at resolution had been made within six months from notice, which in the present case was 12th December.