27 August 2019: The dedicated bankruptcy court has asked Jayaswal Neco Industries Ltd and its lender, the State Bank of India (SBI), to give details about the petition filed by the company in the Supreme Court to stay the insolvency resolution proceedings.
On Monday, the Mumbai bench of the National Company Law Tribunal (NCLT) asked the company and SBI to furnish the details of the case and the Supreme Court’s latest stand on the subject matter.
“The case involves substantial sum and hence we want to know the current status of case,” said the bench presided over by MK Shrawat and Chandra Bhan Singh. “Both the parties have to submit the details of the Special Leave Petition (SLP), which has been filed, along with all the other relevant details by September 9.”
SBI had approached the tribunal in 2018 after the company failed to repay its dues. Nagpur-based Jayaswal Neco owes around Rs 518 crore to SBI and the company’s total debt is more than Rs 4,000 crore.
BSE-listed Jayaswal Neco is part of the so-called second list of RBI, where the regulator had directed banks to do mandatory resolution. The company had challenged the lender’s move to approach the NCLT against the company in the Bombay High Court. However, the high court had rejected the plea and later the company had challenged the high court’s order in the Supreme Court.
The company’s argument is that at the time of the February 12 circular of RBI, the lenders have already agreed for Master Restructuring Agreement (MRA) to restructure the loans of the company.
“Ten out of 12 lenders of the company, barring Oriental Bank of Commerce and IDBI Bank, with around 92% of the value had sanctioned the restructuring scheme,” argued the promoters.