NCLAT Takes ICICI Bank to Task Over Jaiprakash Associates' Insolvency Plea

The National Company Law Appellate Tribunal (NCLAT) has issued a notice to ICICI Bank regarding Jaiprakash Associates Ltd's insolvency plea. JAL had proposed a one-time settlement to clear its debt, but creditors opposed the move. The NCLAT has given the parties until June 24, 2024, to respond.

The National Company Law Appellate Tribunal (NCLAT) has issued a notice to ICICI Bank as Jaiprakash Associates Ltd (JAL) seeks to resolve its staggering debts through a one-time settlement proposal. This proposal was opposed by creditors, citing the company's total debt of over Rs 26,000 crore.

JAL suggested a 18-week window to clear the debt if the settlement is accepted, but the Allahabad bench of the National Company Law Tribunal (NCLT) dismissed the proposal and initiated insolvency proceedings. This decision was later challenged before the NCLAT, which is now considering the case.

The NCLAT has set a hearing date of June 24, 2024, by which time ICICI Bank and other respondents must file replies. The tribunal has also advised JAL to consider depositing a significant amount before the hearing date to bolster its case.