According to the court’s website, a division bench of Justice Ujjwal Bhuyan and Justice Madhav Jamdar will hear the matter on Thursday.
The banking regulator on Monday removed the board of directors of Kolkata-based Srei Infrastructure Finance and Srei Equipment Finance, citing governance concerns and defaults, and asked them to file insolvency proceedings against the two firms with the National Company Law Tribunal (NCLT). will initiate proceedings.
Srei Group’s promoter Manoj Kanoria through his company Adishree Commercial Pvt Ltd has challenged this decision in the Bombay High Court.
A person with knowledge of the development claimed that reserve Bank of India The company made its decision on 27 September without considering a proposal to submit an offer with a potential investor. “Now, the Kolkata-based group is seeking the court’s intervention to stay the RBI order,” the person told ET.
The promoters are also demanding the appointment of an administrator as well as a moratorium on all actions by the company’s creditors.
The central bank has appointed former Chief General Manager of Bank of Baroda Rajnish Sharma as the administrator of both the companies.
Senior advocate Janak Dwarkadas and Amit Naik of law firm Naik Naik & Co are representing Kanoria in the matter.
RBI is represented by senior advocate Venkatesh Dhond and law firm Udvadia & Co.
Shrey is the second finance company against which RBI has initiated insolvency proceedings after Dewan Housing Finance Corporation Limited (DHFL).
The central bank’s action comes in the wake of a consortium of lenders led by UCO Bank classifying loans of credit firms as non-performing assets.
In June, Srei companies had informed stock exchanges that an RBI inspection had flagged a loan of Rs 8,576 crore as related party debt. This is about 30% of the group’s consolidated debt of Rs 28,700 crore. Overall, the group has a debt of over Rs 35,000 crore.