State Bank of India (SBI) has issued fresh notice to recover ₹12,276 crore from Bhushan Power and Steel promoter Sanjay Singhal as the guarantor of various loans availed by the company.
SBI had issued the notice under the Indian Contract Act 1872 and other applicable provisions relating to liability of the guarantor.
In the notice dated August 31, SBI had said if he (Singhal) believes that the debt has been repaid before the receipt of the notice, he should demonstrate such repayment by sending the relevant documents within 14 days.
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The fresh notice on promoter comes even as the bank had already filed an insolvency case against the company in July, 2017 and JSW Steel resolution plan of ₹19,700 crore was approved by National Company of Law Appellate Tribunal in February.
However, Singhal has moved the Supreme Court against the NCLAT order while JSW Steel wanted immunity on the investigations being conducted by Enforcement Directorate (ED), CBI and Serious Fraud Investigation Office.
Even while NCLAT provided unprecedented immunity, the ED attached the asset of BPSL as part of its investigation and questioned the authority of NCLAT to provide immunity to JSW Steel.
Last Friday, the Supreme Court, which was supposed to deliver the final judgment on Tuesday, gave two-week time to both ED and Singhal to submit the final argument.
The fresh notice to Singhal as a guarantor of the loan taken by the company may not have a bearing on the insolvency case waiting for final judgment by Supreme Court, said a senior lawyer.
Since the new notice has been issued under a different Act, it will be dealt separately, he added.