On Friday, the National Company Law Appellate Tribunal (NCLAT) denied the petition challenging the bankruptcy proceedings that were initiated by Jaiprakash Associates Limited (NSE: JPASSOCIAT).
A three-member bench comprised of Justice Ashok Bhushan upheld the decisions of the NCLT that ordered it to initiate the Corporate Insolvency Resolution Process (CIRP) against the company.
We can inform you that the share of the company increased by 5 percent to 7.57 today. Over the past five days, the stock has increased by 21 percent.
An increase of 22 percent was recorded in one month. But, in the long time, it has resulted in massive losses.
In 2008, the value of this particular stock stood at about 300 rupees. From then until now, it has recorded an increase of 97 percent.
However it has fallen to 65 percent this year, and 60 percent over one year.
What Is The Detail?
The appellate tribunal stated, After considering all the concerns, we believe there is nothing to alter the decision from NCLT.
This order was made verbally. The full order has yet to be released.
This Allahabad court is a part of the National Company Law Appellate Tribunal in its ruling of 3 June 2024, directed the commencement of the corporate insolvency resolution process against JAL according to the Insolvency and Bankruptcy Code, 2016.
Additionally, Bhuvan Madan was appointed as a resolution professional (RP).
ICICI Bank had filed an insolvency petition against JAL under Section 7 of the Insolvency and Bankruptcy Code (IBC).
In which it claimed that JAL was in the company and was in default for more than 16,000 crore.
In addition, the nation’s biggest loan provider State Bank of India (SBI) has also filed a complaint with for assistance from the NCLT against JAL with a claim that the company would be in default for a total of Rs 6,893.15 crores as of September 15th, 2022.
JAL the main company of the credit-strapped Jaypee Group, was in August 2017 included on the list by the Reserve Bank of India of big defaulters who took loans from commercial banks to initiate the insolvency process.
JAL The flagship company of the ailing Jaypee Group, was in August 2017 a list of The list of the RBI’s 26 big defaulters that had borrowed money from commercial banks to start insolvency procedures.
Quick Fact
| Company name | Jaiprakash Associates |
|---|---|
| Bankruptcy process | Initiated under IBC 2016 |
| Resolution process start | June 3, 2024 |
| Resolution professional | Bhuvan Madan |
| Insolvency petition by | ICICI Bank, SBI |
| ICICI Bank claim | ₹16,000 crore |
| SBI claim | ₹6,893.15 crore |
| RBI defaulter list | Included in August 2017 |
| NCLT order status | Upheld by NCLAT |
| Share performance (2008 to now) | Declined 97% |
| Share fall (2023) | 65% |
| Share fall (1 year) | 60% |
| Recent rise (5 days) | 21% |
| Recent rise (1 month) | 22% |
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