Jaiprakash Associates Challenges Insolvency Decision in Appellate Tribunal

The suspended board of Jaiprakash Associates has appealed to the National Company Law Appellate Tribunal (NCLAT) against an NCLT order initiating insolvency proceedings. Despite arguments that delays in government approvals caused liquidity issues, the tribunal declined an interim stay and upheld ICICI Bank's insolvency plea.

The suspended board of debt-ridden Jaiprakash Associates has officially contested last week's NCLT order by moving to the appellate tribunal NCLAT, challenging the initiation of insolvency proceedings against the company.

In a petition listed before a vacation bench of the National Company Law Appellate Tribunal (NCLAT), an interim stay on the NCLT order was declined.

On June 3, the Allahabad bench of the National Company Law Tribunal (NCLT) admitted the insolvency plea filed by ICICI Bank, and appointed Bhuvan Madan as the Interim Resolution Professional after suspending the company board. The tribunal upheld the insolvency plea filed in September 2018, rejecting JAL's claims of liquidity crunch due to government delays and prolonged litigation over land acquisition.