THE JHARKHAND STORY DESK
New Delhi, Oct 22: The National Company Law Tribunal (NCLT), Cuttack bench, has approved the initiation of insolvency proceedings against Bhilai Jaypee Cement, a subsidiary of debt-laden Jaiprakash Associates Limited (JAL), following a default of Rs 45 crore to its operational creditor Sidhgiri Holdings Pvt Ltd for coal supplies.
An interim resolution professional (IRP) has been appointed, the company’s board suspended, and a moratorium imposed, preventing asset sales or legal actions against the firm under the Insolvency & Bankruptcy Code (IBC).
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The dispute arose over three purchase orders totaling 6,000 MT of coal between September 2021 and June 2022, for which Bhilai Jaypee Cement made only partial payments. Sidhgiri Holdings issued a statutory demand notice on June 22, 2024, seeking Rs 45.40 crore, including Rs 30.08 crore principal and Rs 15.32 crore interest at 24% per annum.
Bhilai Jaypee Cement challenged the petition, claiming it is solvent and questioning the procedural compliance by the creditor. However, NCLT found that the company did not dispute receipt of coal, the authenticity of invoices, or the debt amount. GST invoices raised in the supplier’s favor were also acknowledged by the cement maker.
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The tribunal concluded that an operational debt exists, admitted the Section 9 application, and initiated the Corporate Insolvency Resolution Process (CIRP). Bhilai Jaypee Cement’s parent, JAL, is already under CIRP, where Vedanta has emerged as the highest bidder with Rs 17,000 crore, surpassing Adani Group.
