The Ahmedabad bench of National Company Law Tribunal (NCLT) on Tuesday issued a notice to Essar Power after L&T Infrastructure Finance Company approached it to initiate insolvency proceedings against the Essar Group company.
L&T has approached the two-member bench comprising Harihar Prakash Chaturvedi and Manorama Kumari for non-repayment of `45.5 crore in dues. The bench, in its notice asked Essar Power, to present its arguments before L&T’s plea is admitted. The matter will come on board in April this year.
The L&T group company had lent the amount to Essar Power Gujarat, subsidiary of Essar Power. As the subsidiary defaulted on its debt repayment, L&T Infrastructure approached Essar Power for being the guarantor. However, the parent company too failed to repay the dues and L&T decided to file interlocutory application under Section 7 of the Insolvency and Bankruptcy Code (IBC) to start corporate insolvency resolution process against the Essar Group company.
