Harish Salve, counsel for Jayaswal Neco told Supreme Court that the RBI had failed to consider the MRA that has been submitted in this regard. He added that the MRA had been backed by lenders as well. Photo: Mint
New Delhi: The Supreme Court on Monday directed that status quo be maintained in the insolvency process against Jayaswal Neco Industries Ltd.
This effectively halts the insolvency proceedings against the company, for now. “Maintain status quo”, said justice Ranjan Gogoi.
Harish Salve, counsel for Jayaswal Neco told the court that the Reserve Bank of India (RBI) had failed to consider the Master Restructuring Agreement (MRA) that has been submitted in this regard. He added that the MRA had been backed by lenders as well.
The company had approached the court against an attempt by RBI to push the company into insolvency proceedings on the grounds that certain technical considerations had not been met.
It is one of the 28 companies in RBI’s second list of loan defaulters and was given time till 13 December to put forth its debt resolution plan with lenders.
Jayaswal Neco has filed a plea in the Bombay high court seeking to implement its debt restructuring plan and save itself from insolvency proceedings.
On the other hand, the State Bank of India (SBI) has moved the National Company Law Tribunal (NCLT) to initiate insolvency proceedings against Jayaswal Neco under provisions of the Insolvency and Bankruptcy Code, 2016 (IBC).