Tag: insolvency

Jaypee Infratech in the year 2017 went into the Insolvency Process after their lenders, i.e., an IDBI Bank-led consortium moved to NCLT against the debt-ridden corporate debtor. As per the application, Jaypee owns an amount of approximately Rs 10,000 crores to the bankers. Round 1 of the Insolvency proceeding to revive Jaypee was initiated last year, wherein Lakshdeep made a bid of Rs 7,350 crore which was rejected by the lenders of Jaypee (corporate debtor). Further, in October last year, the Insolvency Resolution professional started the 2nd round of bidding as per the direction of NCLT to revive Japyee

The two-year long battle is now over and the Supreme court has finally decided the Essar Steel Insolvency case. In the ruling the Supreme Court has set aside the NCLAT judgement and said that the power to decide how to distribute the funds are with the Committee of Creditors. It also added that the operational creditors cannot be treated in the same was as the financial Creditor. This decision will be a test for the Insolvency and Bankruptcy law of India. Earlier NCLAT in its judgement has said that the fund that would come from the bid will be distributed equally among the financial and the operational creditors. However, Supreme court has set aside the NCLAT judgement. It is a test of the Insolvency code and it will be seen how the apex court will distribute the money that would come from the resolution proceed between the class of creditors with different securities and will also see on the validity of the fix time limit for the resolution.

In an order dated November 9, 2019, passed by the National Company Law Tribunal (NCLT), Bankruptcy proceedings have been initiated against the first financial company named Aviva Life Insurance Co. Ltd India. Insolvency proceeding initiated after the company was not paying the car parking, license fees, service charge or other maintenance charge and service tax to Apeejay Trust (Mumbai based). Aviva took office space at Apeejay Express located in Vashi, Mumbai in the year 2008 in June and owed an amount of Rs. 27,67,203 to Apeejay.