If a plan is not decided, then the company goes into liquidation.Both the petitions have been filed under the Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, where the financial creditor initiates insolvency proceedings with a claim.NCLT issued notices to Bhushan Steel Ltd and Bhushan Steel and Power Ltd over insolvency proceedings. Essar Steel, in its petition, had appealed that the RBI notification arrived even while the firm was trying to implement a board-approved restructuring package.
The 12 accounts alone constitute a quarter of the over Rs 8 lakh crore of NPAs.The internal advisory committee (IAC) of the RBI, after its meeting on June 13, had recommended 12 accounts totalling about 25 per cent of the gross NPAs of the banking system for immediate reference under Insolvency and Bankruptcy Code.The tribunal, which has also jurisdiction in the matters related to insolvency and bankruptcy code, was hearing two petitions filed by lead lenders SBI and PNB.SBI is lead banker to defaulters like Bhushan Steel, Essar Steel, Jyoti Structures Ltd and Electrosteel Steel.  
Once a case is admitted by the NCLT, there is a 180-day timeline to decide on a resolution plan, though 90 days can be given in addition. The Countersunk wood screw tribunal has posted the matter for the next hearing on July 19.Last week, Essar Steel moved the Gujarat High Court against insolvency proceedings initiated by the banks on the direction of the RBI. PNB is the lead banker for Bhushan Steel and Power.