RBI is authorised to direct any banking company to initiate insolvency resolution process- Essar Steel India Ltd. Vs. RBI- Gujarat High Court

Filing of application under section 7 of the IBC itself cannot be questioned or that action cannot be quashed, but it goes without saying that such filing would not amount to admitting or allowing the petition for insolvency without offering reasonable opportunity to the debtor company – RBI is authorised to direct any banking company to initiate insolvency resolution process – Adjudicating authority (NCLT) cannot be considered as mere rubber stamp authority at the hands of RBI or any other institution – Banking Company is entitled to initiate insolvency proceedings without the directions of the RBI u/s 35AA of Banking Regulation Act.

RBI is authorised to direct any banking company to initiate insolvency resolution process- Essar Steel India Ltd. Vs. RBI- Gujarat High Court Read Post »