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ICICI files insolvency plea against Jaiprakash

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New Delhi : Private sector lender ICICI Bank has filed insolvency petition against Jaiprakash Associates before the National Company Law Tribunal (NCLT).

The Allahabad bench of NCLT has asked ICICI bank to serve notice to its corporate debtor Jaiprakash Associates within three days and directed Jaypee group firm to file reply by September 17.

If NCLT allows the plea of the ICICI bank, then this will be the second company of the crisis hit Jaypee group facing insolvency.


“Financial creditor is directed to serve notice on the corporate debtor and file affidavit of service within three days. Reply, if any, may be filed within seven days,” said NCLT in its order on Monday. The tribunal has directed to list the matter on September 17 for next hearing.

While, confirming the development, Jaiprakash Associates informed the exchanges, “The Company has been given time to file its reply within seven days and the matter is listed for September 17, 2018”.

The Supreme Court, on August 9, while ordering restart of the corporate insolvency resolution process against Jaypee Infratech, had allowed banks to file a similar petition against Jaiprakash Associates.

Jaiprakash Associates, the flagship firm of the debt-ridden Jaypee group is a diversified infrastructure company engaged in engineering, construction or real estate development, manufacture or marketing of cement, hospitality and sports management.

The total debt of Jaypee group has crossed over Rs 70,000 crore and the same has come down below Rs 30,000 crore after the group sold cement and other businesses.

2 independent directors of Jaypee Infra quit

New Delhi: Jaypee Infratech, which is facing insolvency proceedings, on Monday said that the company’s two independent directors — Keshav Prasad Rau and Basant Kumar Goswami — have resigned. While Rau has cited personal reasons for the resignation, Goswami resigned because of his growing age and indifferent health, the debt-ridden firm said in a regulatory filing. The Interim Resolution Professional (IRP) will place the resignations for acceptance in the next meeting of the Committee of Creditors (CoC).

Last week, Jaypee Infratech — part of the crisis-hit Jaypee group — had said that a meeting of the CoC would be held on September 12 but did not mention the agenda.

According to sources, the CoC in its meeting will restart the resolution process and appoint IRP for conducting the fresh bidding process.

Last month, the Supreme Court ordered to invite fresh bids.

The National Company Law Tribunal (NCLT) had last year admitted the application by an IDBI Bank-led consortium, seeking resolution for Jaypee Infratech under the Insolvency and Bankruptcy Code.

The tribunal had appointed Anuj Jain as IRP to manage the company’s business.