To pay off its outstanding liabilities, insolvent Jaiprakash Associates Ltd. (JAL) has proposed a one-time settlement to ICICI Bank, which the insolvency appeal panel NCLAT has requested be taken into consideration. The National Business Law Tribunal (NCLT), Allahabad, issued an order earlier this month to file for bankruptcy against the business, which the JAL has opposed. The National Company Law Appellate Tribunal (NCLAT) has sent ICICI Bank a notice in this respect, as it is considering the JAL's appeal. It stated that on June 24, the following hearing date, the private sector lender may take into account the one-time settlement (OTS) plan that the indebted JAL had made. During the proceedings of the NCLAT, the JAL, through its counsel, submitted that the company is inclined to make the entire payment within 18 weeks if the OTS is accepted by the bank. This was opposed by creditors, who allege that the total debt is over Rs 260 billion. Earlier, the JAL moved an OTS proposal to creditors before the NCLT, which had a provision of an upfront amount of Rs 2 billion and the balance of about Rs 160 billion to be paid on or before 18 weeks from its acceptance. However, this was dismissed by the Allahabad bench of the NCLT and directed to initiate the Corporate Insolvency Resolution Process (CIRP) against JAL. In its order, a two-member vacation bench of the NCLAT stated that JAL might also consider depositing a larger amount by the next date of hearing. The NCLAT order passed on Monday mentioned, "Considering the submission made, notice is issued to the respondents (ICICI Bank and IRP)." It further stated, "Let the matter be now listed on June 24, 2024, within which period the Respondent Banks may file a reply and may consider the proposal or OTS submitted by the appellant by the said date. The appellant may also consider depositing a larger amount by the next date." An application was filed by the corporate debtor (JAL) to defer the order in the company petition. However, NCLT, on June 3, 2024, dismissed the application and initiated CIRP against the corporate debtor. The NCLAT was hearing a petition filed by Sunil Kumar Sharma on behalf of the suspended Board of Directors of JAL against the order passed by the NCLT. On June 3, the Allahabad bench of NCLT admitted the six-year-old petition filed by ICICI Bank in September 2018 and appointed Bhuvan Madan as Interim Resolution Professional after suspending the board of JAL. During the hearing at NCLAT, concerns were raised regarding over 25,000 employees and the continuation of various projects by JAL. "The same was addressed by the counsel for the IRP, stating that he has taken over the company as a going concern and no adverse impact shall be there in running its project or regarding the fate of such employees," the four-page long NCLAT order noted. Counsel representing JAL submitted that its entire debt is divided into three segments. The first segment consists of debt amounting to Rs 116 billion, which is to be repaid through the sale of plants to Ultratech Cement Ltd., completed in 2017. The second segment consists of debt amounting to Rs 637 billion, which was to continue on new terms as per the MRA dated October 31, 2017, which is still ongoing and being served. Meanwhile, the third segment consists of debt amounting to Rs 135 billion. NCLT, in its 120-page order, rejected JAL's contention that it faced a liquidity crunch and defaulted on debt repayments mainly due to delays in government approvals and prolonged litigation concerning land acquisition for Yamuna Motorway and changes in government policies. The NCLT stated that if there is debt and default in repayment of debt and an application filed by a financial creditor under Section 7 of the Insolvency and Bankruptcy Code, then the insolvency plea is to be admitted.