Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Labour Laws
06/09/20264 min read
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Informative
NCLT Allahabad Bench Initiates Insolvency Proceedings Against Jaiprakash Associates Limited, Accepts ICICI Bank's Petition
Insolvency & Bankruptcy Code
The Allahabad bench of the NCLT directed the initiation of insolvency proceedings against Jaiprakash Associates Limited (JAL), responding to petitions from ICICI Bank and SBI seeking to recover debts totaling several thousand crores. \r
Despite efforts to alleviate debt, including selling cement plants, JAL faces significant financial challenges, with ICICI Bank claiming over Rs 3,000 crore and SBI Rs 6,893.15 crore. Appointing an Interim Resolution Professional (IRP), the NCLT cited default reports of Rs 1,751 crore in principal and Rs 2,865 crore in interest, amidst total borrowings of Rs 29,805 crore due by 2037, with Rs 4,616 crore overdue. \r
Emphasizing the need for insolvency despite restructuring efforts, the NCLT imposed a moratorium under Section 14 of the IBC, halting suits, asset transfers, and recovery actions against JAL.
