NCLAT directs NCLT to decide on the insolvency plea filed by ICICI Bank against Jaiprakash Associates

NCLAT directs NCLT to decide on the insolvency plea filed by ICICI Bank against Jaiprakash Associates

Any person aggrieved by the order of NCLT can file a further appeal on any Question of Law and Fact within 45 Days to NCLAT and any person aggrieved by the order of NCLAT then appeal on Question of Law within 60 Days to Supreme Court.

A petition before the NCLT Allahabad bench was filed by ICICI bank with an appeal to start insolvency proceedings against Jaiprakash Associates Ltd., a company dealing with infrastructure and real estate space since September 2018. The NCLT was instructed by the NCLAT on previous Monday to decide the matter in regards to the insolvency plea against JAL.

The private sector lender ICICI Bank had addressed the National Company Law Appellate Tribunal (NCLAT) with the matter, seeking a direction to NCLT Allahabad-bench to fasten the hearing on its insolvency petition against Jaypee Group firm Jaiprakash Associates Ltd (JAL).

Here a question arose about the powers of the NCLAT and whether it can put forward such directions to the NCLT on the basis of any plea filed. National Company Law Appellate Tribunal is the higher appellate Tribunal or Forum which deals with the appeals from the NCLT.  Article 245 of the Constitution of India renders the power to establish NCLT and NCLAT.

It was enforced on 1 June 2016.Code of Civil Procedure is followed by both the Tribunal and Appellate Tribunal. These two Tribunals are subject to any rules that are formulized and enforced by the Central Government. 

Company Law Board (CLB), The Board for Industrial and Financial Reconstruction (BIFR), The Appellate authority for Industrial and Financial Reconstruction and Company related matters of High court are now governed by NCLT.

ICICI Bank before the appellate tribunal submitted its pleading before NCLAT that since the last 9 months, the progress in the petition that was filed before the NCLT Allahabad was nil.

This matter was heard by a three-judge bench of the NCLAT which was headed by Chairman Justice S J Mukhopadhaya. It was directed to the NCLT Allahabad- bench to make decisions on admitting the insolvency plea by ICICI Bank before it ideally within 6 weeks.

JAL’s subsidiary Jaypee Infratech is already under the corporate insolvency resolution process (CIRP).

Looking at the statements provided by the Bank, JAL owes around Rs 1,296 crore and they approached the NCLT to recover the dues under section 7 of Insolvency & Bankruptcy Code (IBC).

However, JAL Challenged the Petition before the Allahabad High Court which could not sustain and faced a rejection in the same.  JAL also moved the Supreme Court, where the stay of its application was refused.

Author: Debopriya Mukherjee B.A. , LLB (H), 5th year Amity University, Kolkata, Intern at Khurana & Khurana, Advocates and IP Attorneys. In case of any queries please contact/write back to us at
niharika@khuranaandkhurana.com

References

[1] https://www.moneycontrol.com/news/india/nclat-directs-nclt-to-decide-on-ibc-plea-against-jaiprakash-associates-ltd-in-6-weeks-4157111.html

[2] https://economictimes.indiatimes.com/news/company/corporate-trends/nclat-directs-nclt-to-decide-on-ibc-plea-against-jp-associates-in-6-weeks/articleshow/70024862.cms

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