CORPORATE
NCLT begins insolvency proceedings against Jaiprakash Associates
- IBJ Bureau
- Jun 04, 2024
The National Company Law Tribunal (NCLT) on Monday directed to initiate insolvency proceedings against debt-ridden Jaiprakash Associates (JAL), admitting the plea filed by private lender ICICI Bank.
JAL, which is the flagship company of the Jaypee Group, is mainly into construction, cement and hospitality businesses. JAL has sold many cement plants in the last few years to reduce its debt.
A two-member bench at NCLT, Allahabad, comprising members Praveen Gupta and Ashish Verma pronounced the order on Monday afternoon.
The tribunal also appointed an insolvency resolution professional (IRP) and directed the initiation of a Corporate Insolvency Resolution Process (CIRP) against JAL, they said.
The Allahabad bench of the tribunal also dismissed the merger of Jaiprakash Associates with Jaypee Infrastructure Development.
A detailed order is yet to be uploaded on the NCLT website.
In September 2018, leading private sector lender ICICI Bank had filed an insolvency petition against JAL under Section 7 of the Insolvency and Bankruptcy Code. Besides, the country’s biggest lender, SBI, had approached the NCLT against JAL, claiming a total default of Rs 6,893.15 crore as of September 15, 2022.
JAL was a part of the Reserve Bank of India’s list of 26 big loan defaulters to commercial banks for initiating bankruptcy proceedings in August 2017.
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