NCLT rejects Essar Power Jharkhand ex-promoters’ bid to clear dues

The principal bench of the National Company Law Tribunal (NCLT) on Thursday rejected Essar Power Jharkhand’s former promoters’ bid to take the company out of insolvency by offering to pay Rs 1,200 crore as a one-time settlement against a total debt of close to Rs 5,600 crore. The promoters had offered to pay the amount and settle the dues under Section 12 (A) of the Insolvency and Bankruptcy Act. Section 12A of the IBC allows the corporate debtor another chance to make good on the default and retain control over the firm even after the case is admitted to the NCLT.