"In view of the NCLAT order pronounced today, we withdraw the process of sale of debt of Essar Steel India and will proceed as per the order of the NCLAT," SBI said in a statement here.
Essar Steel owes over Rs 450 billion to over 30 banks and other creditors.
SBI's exposure to the defaulting company is over Rs 130 billion.
A two-member bench of the NCLAT headed by Chairman Justice S J Mukhopadhaya Friday held that NuMetal was not related to promoters of Essar Steel and so was eligible for submitted a resolution plan for the company.
However, in case of ArcelorMittal, it held that the company was connected to Uttam Galva and KSS Petron, which are classified by many banks as NPA.
It also said that lenders are allowed to further negotiate bids for Essar and decide expeditiously.
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