New Delhi, Lenders of Jaiprakash Associates Ltd (JAL) on Monday expressed concern over the indebted group's one-time arrangement (OTS) proposal and said they were not convinced with it.
During the proceedings before the NCLAT, the lenders' lawyers said that the insolvency plea was filed against JAL in 2017 and for the last seven years it has been dragged on the pretext of a settlement.
Earlier, on June 10, 2024, during the last hearing, the National Company Law Appellate Tribunal (NCLAT) had asked banks to consider the OTS proposal submitted by debt-ridden JAL by June 24, the next hearing date.
During the hearing on Monday, a two-member vacation bench observed that the banks had not submitted any response to the OTS proposal.
In response to this, the appeals court was informed that JAL had issued a last minute clarification through the OTS last night and that they needed time to review it.
After a brief hearing, NCLAT ordered to post the matter till July 3 for next hearing and directed the JAL lender to consider the OTS and file a reply.
The appellate court was hearing an appeal filed by JAL's suspended board member Sunil Kumar Sharma challenging the order of the Allahabad bench of the National Company Law Tribunal (NCLT).
On June 3, the NCLT bench in Allahabad admitted the six-year-old petition filed by ICICI Bank in September 2018 and appointed Bhuvan Madan as interim resolution professional after suspending the JAL board.
During the last hearing, JAL's lawyer stated that the company is willing to make full payment within 18 weeks, if the bank accepts the OTS.
Earlier, JAL submitted an OTS proposal to creditors before the NCLT, which had a provision of an initial payment of Rs 200 crore and the balance of approximately Rs 16,000 crore to be paid on or before 18 weeks from its acceptance.
However, this was dismissed by the Allahabad bench of the NCLT and ordered to initiate Corporate Insolvency Resolution Process (CIRP) against JAL.
In its order, a two-member vacation bench of the NCLAT said the JAL may also consider a deposit of a larger amount before the next date of hearing.
During the proceedings before the NCLAT, the lenders' lawyers said that the insolvency plea was filed against JAL in 2017 and for the last seven years it has been dragged on the pretext of a settlement.
Earlier, on June 10, 2024, during the last hearing, the National Company Law Appellate Tribunal (NCLAT) had asked banks to consider the OTS proposal submitted by debt-ridden JAL by June 24, the next hearing date.
During the hearing on Monday, a two-member vacation bench observed that the banks had not submitted any response to the OTS proposal.
In response to this, the appeals court was informed that JAL had issued a last minute clarification through the OTS last night and that they needed time to review it.
After a brief hearing, NCLAT ordered to post the matter till July 3 for next hearing and directed the JAL lender to consider the OTS and file a reply.
The appellate court was hearing an appeal filed by JAL's suspended board member Sunil Kumar Sharma challenging the order of the Allahabad bench of the National Company Law Tribunal (NCLT).
On June 3, the NCLT bench in Allahabad admitted the six-year-old petition filed by ICICI Bank in September 2018 and appointed Bhuvan Madan as interim resolution professional after suspending the JAL board.
During the last hearing, JAL's lawyer stated that the company is willing to make full payment within 18 weeks, if the bank accepts the OTS.
Earlier, JAL submitted an OTS proposal to creditors before the NCLT, which had a provision of an initial payment of Rs 200 crore and the balance of approximately Rs 16,000 crore to be paid on or before 18 weeks from its acceptance.
However, this was dismissed by the Allahabad bench of the NCLT and ordered to initiate Corporate Insolvency Resolution Process (CIRP) against JAL.
In its order, a two-member vacation bench of the NCLAT said the JAL may also consider a deposit of a larger amount before the next date of hearing.
