New Delhi: The National Company Law Tribunal (NCLT) has admitted ICICI Bank Ltd’s insolvency petition against Essar Power Jharkhand Ltd for defaulting on more than Rs3,033 crore.
“We are satisfied that a default has occurred... Thus, the application warrants admission,” a 14-page order by the NCLT principal bench in New Delhi read.
The bench headed by president M.M. Kumar, through its 5 April order, also imposed a moratorium in terms of Section 14 of the Insolvency and Bankruptcy Code, including a prohibition on any transfer or alienation of the company’s assets. Huzefa Fakhri Sitabkhan has been appointed as the interim resolution professional (IRP).
As on 15 December 2017, Essar Power Jharkhand’s dues including principal and interest was over Rs3,468 crore.
Once a plea to initiate insolvency proceedings is admitted, the IRP must submit a debt resolution plan to the tribunal for its approval in 180 days, which may be extended to 270 days.
Essar Power Jharkhand has not contested the insolvency petition filed under the Insolvency and Bankruptcy Code.
ICICI Bank had moved the NCLT against Essar Power Jharkhand on 9 January.
Essar Power Jharkhand features in the 28 August 2017 directive by the Reserve Bank of India directing action against defaulters.