MUMBAI: The Delhi High Court has ordered IDBI Bank not to initiate insolvency proceedings against BILT Graphic Paper, which figures in the list of 29 companies that the Reserve Bank of India ordered banks to resolve through bankruptcy laws.BILT Graphic Paper, the Thapars-owned company, had moved Delhi High Court against IDBI Bank and the Reserve Bank of India after the bank initiated insolvency proceedings for defaulting on loan repayments.In August, the Reserve Bank of India had issued a list of 29 companies to banks directing them to resolve the accounts by December 13, failing which banks should refer the account to bankruptcy court.Majority of the lenders agreed to restructure the loans of BILT Graphic Paper within December 13 deadline and in line with the terms stipulated by the regulator. Despite this, the package was rejected by the Reserve Bank of India on grounds that all lenders had not accepted it. Then IDBI Bank initiated insolvency proceedings on the regulatory order.The National Company Law Tribunal has yet not admitted BILT Graphic Paper case. The company owes banks nearly Rs 7,000 crore.The lawyer of BILT Graphic Paper, Harish Salve, pointed out that a Master Reconstruction Agreement (MRA) has been signed and approved by a majority which comprises of more than 71% of creditors in value and 61% in number. This is against RBI’s rules that require 60% of the secured creditors in value and 50% in number.The lawyer for lenders objected citing bankruptcy laws which prevent blocking by civil courts.The Delhi High Court has asked IDBI Bank to maintain status quo on the matter and announced the next hearing on May 24.While asking banks to resolve the loans by December 13, the RBI had also said that if the debt of these 29 companies are resolved outside bankruptcy court, the sustainable portion of the loan should receive investment grade rating which are chosen by the regulator. As per the package, 64% of the BILT Graphic Paper’s loan was classified as sustainable debt and assigned investment grade rating by two rating companies — India Ratings and Brickworks.