NCLT rejects JAL's claim of liquidity crunch

05 Jun 2024 CW Team

The National Company Law Tribunal (NCLT), which recently initiated insolvency proceedings against Jaiprakash Associates Ltd (JAL), dismissed the company's claim of facing a liquidity crisis and failing to repay debts primarily due to delays in government approvals and prolonged litigation regarding land acquisition for the Yamuna Expressway and changes in government policies. Despite JAL's assertion of being an 'asset-rich company', the NCLT rejected its arguments, emphasizing that debt repayment defaults trigger insolvency proceedings under Section 7 of the Insolvency & Bankruptcy Code, regardless of reasons such as liquidity challenges, litigation, or policy changes. The tribunal mentioned the importance of expeditiously resolving JAL's insolvency to safeguard its assets and enable debt repayment. Furthermore, the NCLT order highlighted ICICI Bank's concerns regarding JAL's debt restructuring, citing uncertainties regarding receivables from arbitration and the insufficiency of funds to settle outstanding debts. Following ICICI Bank's insolvency petition in September 2018, the NCLT appointed Bhuvan Madan as Interim Resolution Professional for JAL and rejected the company's merger with Jaypee Infrastructure Development Ltd. Despite JAL's disclosure of defaulting on repayments totalling Rs 46.16 billion as of April 30, 2024, the NCLT's decision underscores the imperative of addressing debt defaults promptly to facilitate the company's financial recovery. (Source: ET)

Infrastructure Transport

06 Feb 2026

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..