The Mumbai Bench of the National Company Law Tribunal (NCLT) has ordered initiation of corporate insolvency resolution process (CIRP) against Essel Infraprojects Ltd on a petition filed by Jammu and Kashmir Bank over a default of Rs 87.43 crore. Essel Infraprojects is one of many Subhash Chandra companies facing insolvency process.
The NCLT’s Court-V, in an order pronounced on August 24, held that the bank had established the existence of debt and default and that its petition was within the limitation period. The tribunal also rejected Essel Infraprojects’ contention that it had been discharged from its corporate guarantee after the transfer of the underlying mortgaged property to other group entities.
The default…