ICICI Bank moved to NCLT against JP Associates

11 Sep
ICICI Bank moved to NCLT against JP Associates

ICICI Bank has filed a petition under Insolvency and Bankruptcy Code, 2016 against debt-ridden corporate Jaiprakash Associates Limited with the Allahabad Bench of the National Company Law Tribunal (NCLT).

The petition, under Section 7 of the Insolvency and Bankruptcy Code, will formally initiate insolvency proceedings against the company.

“As is clear from the Order itself that no notice of the Petition had been served on the Company,” Jaiprakash Associates said in a regulatory filing on Monday, adding that it has been given time to file its reply within seven days.

The matter is listed for hearing on September 17, 2018.

ICICI Bank is the lead lender in the consortium. Jaiprakash Associates Limited, which is into the construction, real estate and cement businesses. Jaiprakash Associated Limited owed approx ₹1,500 crore.

The move comes nearly a year after the Reserve Bank of India came out with a second list of close to 30 companies to be taken to the NCLT. Jaiprakash Associates Limited featured on the list.

Banks were given time to resolve these cases outside the NCLT till December 2017, failing which they were to face insolvency proceedings.

The RBI had rejected an appeal by the lenders to exempt Jaiprakash Associates Limited from insolvency proceedings and allow Debt Restructuring outside the IBC process.

Jaiprakash Associates is the flagship firm of the Jaypee Group headed by Manoj Gaur.

For the quarter ended June 30, 2018, the company posted a net loss of ₹285 crore as against a net profit of ₹764.99 crore in the corresponding period a year ago.