JAL’s suspended board moves NCLAT
Challenges NCLT order on initiating insolvency proceedings against debt-ridden Jaiprakash Associates
New Delhi: The suspended board of debt-ridden Jaiprakash Associates Ltd (JAL) has moved appellate tribunal NCLAT challenging last week’s NCLT order, which directed initiation of insolvency proceedings against the firm.
The petition was listed before a vacation bench of the National Company Law Appellate Tribunal (NCLAT), which declined to grant an interim stay on the NCLT order. On June 3, the Allahabad bench of National Company Law Tribunal (NCLT) admitted the insolvency plea filed by ICICI Bank.
The tribunal also appointed Bhuvan Madan as Interim Resolution Professional of JAL after suspending the board of the company. In September 2018, ICICI Bank had filed an insolvency petition against JAL under Section 7 of IBC. The NCLT rejected JAL’s contention that it faced a liquidity crunch and defaulted on debt repayments mainly due to delays in government approvals and prolonged litigation concerning land acquisition for Yamuna Expressway and changes in government policies.
