Subsequently, on August 2, 2017, the NCLT, Ahmedabad allowed insolvency petitions filed by the State Bank of India and Standard Chartered Bank against ESIL under Section 7 of the IBC. A Resolution Professional (RP) was appointed, and claims from stakeholders were invited. IOCL submitted a claim for ₹ 3,762 crores. However, the RP notified IOCL that the claim had been admitted for a requisite amount of ₹ 1. Thereafter, on October 25, 2018, the Committee of Creditors (COC) of ESIL accepted the Resolution Plan submitted by Arcelor Mittal, which was later sanctioned by the NCLT on March 8,2019. However, the NCLT differed with the RP in the admission of claims of the operational creditors including that of IOCL at ₹ 1. This led to appeals in NCLAT whereby similar orders were passed.
Source: Barandbench
