# In the matter of Jaiprakash Associates Limited

> NCLT judgment dated 2024-06-03. Citation: TCN-2024-NCLT-01253. ICICI Bank Limited initiated a Corporate Insolvency Resolution Process (CIRP) against…

- **Court:** NCLT
- **Order date:** 3 Jun 2024
- **Citation:** TCN-2024-NCLT-01253
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jaiprakash-associates-limited-18fa9cb4

## 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. JAL claimed that the debt related to Bucket 2B, which was to be transferred to a Special Purpose Vehicle (SPV), and no default existed. The NCLT Allahabad Bench considered the arguments and evidence presented by both parties.

## Facts

ICICI Bank Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Jaiprakash Associates Limited (JAL). The petition was based on a default of Rs. 1269,10,26,803.06/-. The loans were sanctioned under six different facilities. Jaiprakash Associates Limited argued that there was no default because the debt had been restructured under a Comprehensive Reorganisation & Restructuring Plan (CRRP) and was to be transferred to a Special Purpose Vehicle (SPV). The CRRP divided the debt into three buckets: Bucket 1, Bucket 2A, and Bucket 2B. The debt in question was part of Bucket 2B. The Corporate Debtor also referred to a sanction letter dated 19.05.2017, which they claimed

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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 judgment of the Hon'ble Supreme Court in the case of Dharani Sugars and Chemicals

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**Reasoning:** The Hon'ble Allahabad High Court upheld the validity of filing the application in a writ

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**Interpretation:** The issue of maintainability was addressed by the Hon'ble Supreme Court in the

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**Application:** The NCLT determined that the

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** ICICI Bank…
- **Respondents:** Jaiprakash…

## Timeline

- **2018-09-07 — Application…**: ICICI Bank Limited filed the present…
- **2018-09-16 — Reply/Counter…**: 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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