NCLAT OKs order to admit Jammu & Kashmir Bk IBC plea vs Essel Infraprojects
This story was originally published at 19:33 IST on 11 September 2025
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NEW DELHI – The National Company Law Appellate Tribunal on Thursday upheld an order by the Mumbai bench of the National Company Law Tribunal to admit Jammu & Kashmir Bank's insolvency plea against Essel Infraprojects Ltd., a company promoted by media baron Subhash Chandra. Dismissing an appeal by Pooja Ramesh Singh, the suspended director of Essel Infraprojects, the appellate tribunal said it did not find any error in the Mumbai tribunal's order.
In 2013, the bank had sanctioned a long-term working facility of INR 2 billion to Pan India Utilities Distribution Co. Ltd. The loan to Pan India was secured by a corporate guarantee given by Essel Infraprojects with mortgage over a piece of land in Mumbai owned by the latter. The loan was renewed in 2017.
Thereafter, Pan India defaulted in repayment of installments agreed by it with the bank. Pan India had unpaid claims of INR 699.77 million as on 2019 with interest of INR 173.65 million. Consequently, the bank sent a demand notice to Pan India for the unpaid dues. In its reply, Pan India admitted the debt and requested for further time to repay it.
Jammu & Kashmir Bank issued a letter to Essel Infraprojects with respect to the outstanding loan of Pan India. After no reply from Essel Infraprojects, the bank moved the Mumbai tribunal to start insolvency proceedings against the company. In 2024, the Mumbai tribunal admitted the bank's insolvency plea against Essel Infraprojects for an unpaid amount of INR 874.32 million.
On Thursday, shares of Jammu & Kashmir Bank ended 0.6% higher at INR 101.71 on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Avishek Dutta
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