New Delhi: The Supreme Court on Friday dismissed a plea by Jaiprakash Associates Ltd (JAL) seeking to restrain ICICI Bank from initiating insolvency proceedings against it.

A bench led by Justice N.V. Ramana upheld the order of the Allahabad High Court that had relied on the apex courts August order in the Jaypee Infratech (JIL) insolvency case, where it asked the National Company Law Tribunal (NCLT), Allahabad, to deal with insolvency proceedings against JIL.

A limitation period of 180 days had been set to conclude insolvency proceedings at NCLT.

The Allahabad High Court had also allowed the Reserve Bank of India (RBI) to direct banks to initiate separate insolvency proceedings against JIL’s holding company JAL.

The top court was ruling on a plea by debt-ridden JAL seeking to restrain ICICI Bank from initiating insolvency proceedings against it under Section 7 of the Insolvency and Bankruptcy Code (IBC).

In its appeal, JAL told the apex court that the Composite Restructuring and Realignment Plan (CRRP) approved by the Joint Lenders forum (JLF) and pending consideration of the NCLT, Allahabad, could not co-exist with insolvency proceedings initiated at the instance of the RBI.

In the Jaypee Infratech insolvency case, the top court had allowed the RBI to initiate insolvency proceedings against JAL, noting that it owes over 30,000 crore to 30 banks.

JAL featured in RBI’s second list of at least 26 defaulters with which it wants creditors to start the process of debt resolution before initiating bankruptcy proceedings.

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