NCLAT on Jaiprakash Associates: The National Company Law Appellate Tribunal (NCLAT) on Friday dismissed a petition challenging the insolvency proceedings of Jaiprakash Associates Limited (JAL). A three-member bench headed by Justice Ashok Bhushan upheld the orders passed by the NCLT directing the initiation of a Corporate Insolvency Resolution Process (CIRP) against the company.

"After considering all the issues, we are of the view that there is no ground to interfere with the order of NCLT," the appellate tribunal said, passing the order orally. The detailed order is yet to be issued.

under the Corporate Insolvency Resolution Process

The Allahabad bench of the National Company Law Appellate Tribunal in its order dated June 3, 2024, had directed to initiate the corporate insolvency resolution process against JAL under the Insolvency and Bankruptcy Code, 2016. Along with this, Bhuvan Madan was appointed as the resolution professional (RP). ICICI Bank had filed an insolvency petition against JAL under Section 7 of the Insolvency and Bankruptcy Code (IBC), claiminga default of more than Rs 16,000 crore.

JAL, the flagship company of Jaypee Group, is in debt

Apart from this, the country's largest lender State Bank of India (SBI) had also approached the NCLT against JAL, claiming a total default of Rs 6,893.15 crore by September 15, 2022. JAL, the flagship company of the debt-ridden Jaypee Group, was included in the Reserve Bank of India's list of 26 big defaulters who took loans from commercial banks to initiate insolvency proceedings in August 2017.