SC grants established order to insolvency proceedings in opposition to JNIL

Nagpur: The Supreme Court has granted status quo to the against city-based company, Jayaswals Neco Industries Limited (JNIL). The company headed by Basantlal Shaw has bank loan defaults to the tune of over Rs3,500 core.
The company featured in the second list of bank defaulters released by RBI against which directives were issued to initiate insolvency proceedings at the national company law tribunal (NCLT). However, JNIL had got a corporate debt restructuring (CDR) plan approved from the lenders.

The company’s stance was that since CDR plan, had been cleared, the insolvency proceedings cannot be initiated.

“As the apex court has granted a status quo, the company will get a breather in the case finally. The loan revamp was approved by the lenders and the company had also deposited Rs100 crore as per the plan. However, in between the insolvency proceedings had begun at the NCLT,” said a company source.

TOI had reported in September last year that a CDR plan had got an in-principle approval from the bankers. This was a month after the RBI had issued the second list of defaulter which included JNIL’s name.

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