Suspended JAL board represents NCLAT

New Delhi: The suspended board of directors of debt-ridden Jaiprakash Associates Ltd (JAL) has approached the NCLAT challenging the NCLT’s order passed last week initiating insolvency proceedings against the company.

The petition was referred to an appellate bench of the National Company Law Appellate Tribunal (NCLAT), which, however, refused to grant an interim stay on the NCLT order. On June 3, the Allahabad bench of the National Company Law Tribunal (NCLT) allowed ICICI Bank’s insolvency petition.

The court also appointed Bhuvan Madan as interim resolution professional of JAL after suspending the company’s board. In September 2018, ICICI Bank had filed an insolvency petition against JAL under Section 7 of the IBC. The NCLT rejected JAL’s claim that the company was facing a liquidity crisis and was defaulting on its debt repayments, mainly due to delays in regulatory approvals and protracted litigation regarding land acquisition for the Yamuna Expressway and changes in government policies.