Jaiprakash Associates Limited’s (JAL) lenders Tuesday informed the National Company Law Appellate Tribunal (NCLAT) that the Supreme Court and Reserve Bank had directed the initiation of the insolvency resolution process against the company.
Further, the lenders argued that JAL had a debt and committed default, which warrants its resolution under the Insolvency and Bankruptcy Code, 2016 (IBC).
ICICI bank, one of JAL’s lenders, through its counsel contended that RBI directed the initiation of the insolvency resolution process against JAL as substantial public money was involved and being a regulator, it had a duty to protect the consumer interest.
“RBI in its June 2017 letter identified JAL as an account under which more than 60% of…
