Companies

NCLAT stays liquidation of Jyoti Structures Ltd

Our Bureau Mumbai | Updated on August 20, 2018 Published on August 20, 2018

Company was first to go under IBC

The National Company Law Appellate Tribunal (NCLAT) on Monday granted an interim stay on the liquidation of Jyoti Structures Ltd.

The National Company Law Tribunal (NCLT) had earlier approved bankruptcy proceedings against the company, in response to a plea by lenders, led by State Bank of India. However, after several attempts to find a buyer through the insolvency proceedings failed, the NCLT agreed to put the company up for liquidation.

NCLAT’s decision came after a group of investors, led by Sharad Sanghi and 800 employees of the corporate debtor, appealed against the liquidation. Sanghi, who sold his company Netmagic to Japanese telecom major NTT Communication five years ago, had bid for Jyoti Structures along with a clutch of other investors. But the NCLT had rejected this bid.

Jyoti Structures was the first company to face proceedings under the new bankruptcy law. It is an engineering, procurement and construction company in the power sector. The firm’s consolidated net loss widened to ₹1,426 crore in FY17, from a ₹704-crore loss in FY16.

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Published on August 20, 2018
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