Earlier this year, the Allahabad bench of the National Company Law Tribunal initiated insolvency proceedings against Jaiprakash Associates Ltd. in a plea moved by ICICI Bank Ltd. The tribunal held the construction company to be in default for Rs 1,269 crore.
ICICI Bank had sanctioned loans to Jaiprakash Associates under six different facilities between 2011 and 2015. These loans totalled a huge amount—nearly Rs 4750 crore.
In its 120-page-long order, the NCLT rejected Jaiprakash Associates’ contention that it faced a liquidity crunch and defaulted on debt repayments mainly due to delays in government approvals and prolonged litigation concerning land acquisition for the Yamuna Expressway and changes in government policies.
Once the…
