Standard Chartered Bank (SCB) has approached the Ahmedabad Bench of the National Company Law Tribunal (NCLT), seeking to reject the resolution plan of ₹42,000 crore submitted by ArcelorMittal for Essar Steel.
Last month, the bank had filed a caveat in the Essar Steel insolvency case in the dedicated bankruptcy court as dissenting financial creditor, so that it could be heard before the tribunal decides on ArcelorMittal’s bid . The case is likely to come up for hearing on Monday.
SCB said it was aggrieved by the discriminatory practice of the Committee of Creditors (CoC), in illegally forming a core-committee of CoC (beyond the scope of IBC) to negotiate with ArcelorMittal. It said that the core committee included SBI, ICICI Bank, IDBI Bank and Edelweiss ARC, which illegally negotiated with ArcelorMittal and retained the right to distribute the amount of ₹42,000 crore of upfront payment among the financial creditors as per the choice of the core committee members.
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The Indian subsidiary of British banking major Standard Chartered, which has more than 7.5% weightage in the voting process, has voted against the resolution plan of ArcelorMittal, which was approved by the CoC and sent to NCLT for approval.