The Gujarat High Court on Monday dismissed a plea by Essar Steel India Ltd, which challenged a Reserve Bank of India order. The June 13 order asked banks to initiate insolvency proceedings against the company and also refer certain cases to the National Company Law Tribunal, the Business Standard reported.
Justice SG Shah said Essar will be granted no relief, Mint reported. A detailed court order is expected later on Monday.
Essar Steel owes lenders around Rs 45,000 crore. Rs 31,671 crore of the total sum had been deemed non-performing on March 31, 2016.
The company has objected to being clubbed with 11 other defaulters. It had said it was in talks with banks about restructuring repayments.