Tuesday, April 23, 2024

Ex-Bhushan Steel chief submits plea challenging IBC provisions before Delhi High Court

New Delhi: The Delhi High Court has issued a notice in a petition filed by Bhushan Power and Steel’s former chief, Sanjay Singhal, challenging the State Bank of India’s decision to invoke Singhal’s bank guarantee for not paying the company’s dues.

A divisional bench of Chief Justice D.N. Patel and Justice Prateek Jalan, while hearing the matter through physical hearing, has issued the notice to the Central government, Insolvency and Bankruptcy Board of India, and State Bank of India and tagged the matter with the Anil Ambani’s matter.

The petition has been filed by Sanjay Singhal through his advocate Rishi Agrawal, challenging the validity of the Insolvency and Bankruptcy Code and has further sought relief on similar grounds as that of the relief granted to Anil Ambani and striking sections 95, 96, 97, 99, 100 and 101 from the Insolvency and Bankruptcy Code.

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The counsel appearing for Singhal submitted that it was wholly impermissible to enforce sections in relation to personal guarantors to corporate debtors as it was unconstitutional.

The bench has listed the matter for further hearing on October 6.

-India Legal Bureau


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