STATE BANK OF INDIA Vs. BHUSHAN STEEL LIMITED

JUDGEMENT

(1.) The State Bank of India is a Bank established by the State Bank of India Act, 1955. It is a Parliamentary Legislation which was to transfer all the assets of imperial Bank of India to it. The Act made various provisions with regard to the transfer and other matter connected with or incidental thereto. There are many other developments which might have taken place but in the present case we are concerned with the merger of other five subsidiaries Banks into State Bank of India namely State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State of Patiala and State Bank of Travancore. As a result of merger, the combination has become the first Indian lender bank to rank amongst the world's top 50 banks. A document with regard to merger has been placed on record of this petition. The merger has taken place w.e.f. 01.04.2017 vide notification dated 22.02.2017. The gazette notification to this effect has been placed on record (Annexure P/ 1).

(2.) Sometimes in the history of a nation evolutionary processes are perfected so as to usher in financial stability by striking at the elements of uncertainty To achieve the object Insolvency and Bankruptcy Code, 2016 has been enacted (for brevity 'IBC'). The problems of ever increasing Non-performing assets is attempted to be resolved in a time bound manner for maximisation of value of assets, inter alia, in respect of Corporate persons and also to promote entrepreneurship, availability of credit and balancing the interests of, and alteration in, the order of priority of Government dues.

(3.) Taking advantage of the IBC, the present petition has been filed by the State Bank of India under Section 7 thereof in the matter of Bhushan Steel Limited (for brevity 'the Financial Debtor') with a prayer to initiate Corporate Insolvency Resolution Process. The Financial Debtor has its registered office at Bhushan Centre, Ground Floor, Hyatt Regency Complex, Bhikaji Cama Place, New Delhi. The petitioner has also proposed the name of Interim Resolution Professional Mr. Vijay Kumar V Iyer (IBBI/IPA-001/IP-P00261/2017-18/10490). He has also filed a declaration stating that he was eligible to be appointed as Interim Resolution Professional in respect of the Financial Debtor in accordance with the provisions of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate persons) Regulations, 2016. The petition was filed on 03.07.2017 and the pleadings have been completed.