NCLAT asks ICICI to consider OTS proposal in Jaiprakash Associates case

Insolvency appellate tribunal NCLAT has issued a notice to ICICI Bank over the plea of Jaiprakash Associates Ltd and said the private sector lender may consider the one-time settlement proposal submitted by the debt-ridden company by June 24, the next date of hearing.

During the proceedings of NCLAT, JAL through its counsel submitted that it is inclined to make the entire payment within 18 weeks, if the OTS is accepted by the Bank, which was opposed by creditors alleging that the total debt is over Rs 26,000 crore.

Earlier, JAL moved a one-time settlement Proposal (OTS) to creditors before the NCLT, which had a provision of an upfront amount of Rs 200 crore and the balance of about Rs 16,000 crore to be paid on or before 18 weeks from its acceptance.

However, this was dismissed by the Allahabad bench of the National Company Law Tribunal (NCLT) and directed to initiate the Corporate Insolvency Resolution Process (CIRP) against JAL, which was challenged before NCLAT.

In its order, a