# In the matter of Jaiprakash Associates Limited

> NCLT judgment dated 2024-06-03. Citation: TCN-2024-NCLT-01258. ICICI Bank Limited initiated a Corporate Insolvency Resolution Process (CIRP) against…

- **Court:** NCLT
- **Order date:** 3 Jun 2024
- **Citation:** TCN-2024-NCLT-01258
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jaiprakash-associates-limited-06452912

## Summary

### Background

ICICI Bank Limited initiated a Corporate Insolvency Resolution Process (CIRP) against Jaiprakash Associates Limited (JAL) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). The application was filed due to a default of Rs. 1269,10,26,803.06/-. JAL contested the application, arguing that a Comprehensive Reorganisation & Restructuring Plan (CRRP) had been approved, and the debt was restructured into three buckets, with the debt in Bucket 2B, the subject of this application, to be transferred to a Special Purpose Vehicle (SPV). JAL argued that since the Scheme of Arrangement was effective from 01.07.2017, there was no default. The RBI directed ICICI Bank to initiate CIRP against JAL, leading to the present application.

## Facts

ICICI Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate a Corporate Insolvency Resolution Process (CIRP) against Jaiprakash Associates Limited (JAL). The application was based on a financial debt of Rs. 1269,10,26,803.06/- with default dates of 30.04.2016 and 15.05.2016. ICICI Bank had sanctioned various loans to JAL under six different facilities. JAL argued that a Comprehensive Reorganisation & Restructuring Plan (CRRP) had been approved, and the debt was restructured into three buckets: Bucket 1 (Rs. 11,689 crore), Bucket 2A (Rs. 6367 crore), and Bucket 2B (Rs. 13,590 crore). The debt in Bucket 2B, the subject of this application, was to be transferred to a Special Purpose Vehicle (SPV). JAL contended that

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## Issues and analysis

### Issue 1: Whether the Application is maintainable, especially in light of the decision of the Hon'ble Supreme …

**Ratio:** The Hon'ble Supreme Court in the case of Chitra Sharma (supra) and validity of filing of

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**Reasoning:** The NCLT found that the filing of the present application is legally maintainable. The

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**Interpretation:** The judgment of the Hon'ble Supreme Court in Dharni Sugar And Chemicals Ltd.

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**Application:** The NCLT held that the present Application under consideration is held to be

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** ICICI Bank…
- **Respondents:** Jaiprakash…
- **Advocates:** Amit Sa…; Rahul Ag…; +5 more

## Timeline

- **2018-09-07 — Application…**: ICICI Bank Limited filed the present…
- **2018-09-16 — Reply Fi…**: The Respondent/Corporate Debtor filed the Reply/Counter Affidavit contending that there…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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