NCLAT Urges Swift Resolution in Jaiprakash Investments Case

The National Company Law Appellate Tribunal (NCLAT) has directed the National Company Law Tribunal (NCLT) to expeditiously decide on a decision relating to Jaiprakash Associates' investments, which are under the scanner for insolvency proceedings. The order relates to staying the process of inviting the Expression of Interest (EOI) for Jaiprakash Power Ventures and Jaypee Fertilisers & Industry.

The NCLT's decision, originally issued on April 29, 2025, was challenged by the National Asset Reconstruction Company Ltd (NARCL) and the Resolution Professional, who argued that the NCLT's lack of stated reasons for an interim stay hindered the Corporate Insolvency Resolution Process (CIRP), which operates on a strict timeline.

As the date for a hearing approaches on May 26, 2025, stakeholders emphasize the importance of due process, expressing concerns over transparency and the protection of stakeholders' interests in the potential sale of investments. The NCLT is urged to act swiftly to address these issues, ensuring compliance with the Insolvency & Bankruptcy Code requirements.

(With inputs from agencies.)