NCLT Orders Insolvency Proceedings Against Jaiprakash Associates

The National Company Law Tribunal (NCLT) has initiated insolvency proceedings against Jaiprakash Associates Ltd (JAL) following a plea by ICICI Bank. JAL, a major player in construction, cement, and hospitality, faces significant debt issues. The tribunal also dismissed the merger with Jaypee Infrastructure Development Ltd.

The National Company Law Tribunal (NCLT) on Monday directed the initiation of insolvency proceedings against the debt-ridden Jaiprakash Associates Ltd (JAL), following a plea by private lender ICICI Bank.

JAL, the flagship firm of Jaypee Group involved in construction, cement, and hospitality, has been striving to reduce debt by selling off multiple cement plants in recent years. The Allahabad bench of the NCLT, consisting of Members Praveen Gupta and Ashish Verma, delivered the order on Monday afternoon, as reported by lawyers associated with the case.

The tribunal also appointed an interim resolution professional (IRP) and ordered the commencement of a Corporate Insolvency Resolution Process (CIRP) against JAL. Moreover, the bench turned down the merger of Jaiprakash Associates Ltd with Jaypee Infrastructure Development Ltd. A comprehensive order is awaited on the NCLT website.

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