NCLAT stays Jyoti Structures liquidation

The National Company Law Appellate Tribunal (NCLAT) has stayed the liquidation of debt-ridden real estate firm Jyoti Structures and barred any sale of its assets till further orders.

The appellate tribunal has directed the Mumbai bench of the National Company Law Tribunal (NCLT) and the resolution professional of the company not to take any steps in this regard.

"Until further order, the Adjudicating Authority (NCLT) will not pass any order under Section 33, neither the Resolution Professional or the Adjudicating Authority will take steps to sell any movable or immovable assets of the Corporate Debtor.

"Resolution Professional will also ensure that the company remains ongoing concern," said a NCLAT bench.

A two member bench headed by Chairman Justice S J Mukhopadhaya has directed to list the matter on September 18 for next hearing. NCLAT's direction came over a petition filed by over 800 employees of Jyoti Structures. Jyoti Structures was among the 12 companies in the first list issued by the government to face the insolvency proceedings in June 2017.

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Lenders of the company could not finalise a buyer for the real estate firm under mandatory 270 days prescribed under the Insolvency and Bankruptcy Code, failing which the company was heading for liquidation as mandated under the law. DBS Bank, which is one of the lenders has opposed the resolution plan and had moved NCLT for liquidation of the company.