New Delhi: In a setback to Punj Lloyd Ltd, National Company Law Tribunal (NCLT) on Friday admitted an insolvency plea against the engineering and construction firm filed by ICICI Bank Ltd. A two-member principal bench headed by president Justice M.M. Kumar has admitted the lender's plea to initiate insolvency proceedings against Punj Lloyd for a default of ₹853.83 crore.
Confirming the development, Punj Lloyd said in a regulatory filing that the company was waiting for the copy of the full order to provide further details.
"We hereby inform you that NCLT Principal Bench, New Delhi vide order pronounced on March 8, 2019, has admitted the petition filed by ICICI Bank under Section 7 of the Insolvency and Bankruptcy Code, 2016 in respect of an alleged default amount of ₹853.83 crore," Punj Lloyd said in the filing.
ICICI Bank had in June 2018 filed an application before NCLT against Punj Lloyd alleging default by the company. However, at that time, its other lenders—including the State Bank of India—opposed the insolvency plea, saying that the company has several ongoing projects and favoured restructuring of its debts.
Punj Lloyd has total debt of around ₹6,000 crore, of which ICICI Bank accounts for around ₹854 crore.
On Friday, Punj Lloyd shares gained 4.86% to ₹2.59 apiece on the BSE while the benchmark Sensex shed 0.15% to end the day at 36,671.43 points.