ICICI Bank files insolvency case against Jaiprakash Associates

The NCLT has asked ICICI bank to serve notice to its corporate debtor withing three days.

The country's private lender, ICICI Bank, has filed an insolvency case against Jaiprakash Associates before the Allahabad Bench of the National Company Law Tribunal (NCLT).
 
The Tribunal has asked ICICI bank to serve notice to its corporate debtor withing three days.
 
JP Group has been asked to file reply by September 17. 
 
The insolvency proceedings will be initiated against the debt-ridden company under Section 7 of the insolvency law (IBC).
 
In a regulatory filing on Monday, Jaiprakash Associates confirmed it has been given time to file its reply within seven days.
 
In January this year, the Reserve Bank of India asked banks not to initiate bankruptcy proceedings against Jaiprakash Associates.
 
The apex court's order was in anticipation of legal complications after a Supreme Court ruling barred its promoters from selling or transferring assets.
 
Jaiprakash Associates is among 28 companies that banks were directed to refer to bankruptcy court if debt resolution plans weren’t in place by the end of 2017. 
 
For the quarter ended June 30, 2018, the company posted a net loss of ₹285 crore as against a net profit of ₹764.99 crore in the corresponding period a year ago.
 
Source: Media reports

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