Authority: National Company Law Appellate Tribunal, Principal Bench, New Delhi

Order Date: 10 July 2026

Case Overview

This is an appeal (Comp. App. (AT) (Ins) No. 761 of 2026) filed by Jaypee Infratech Ltd (JIL) against the Resolution Professional (RP) for Jaiprakash Associates Ltd (JAL) and others. The dispute concerns the rejection of a claim for Rs 85 crore lodged by JIL in the Corporate Insolvency Resolution Process (CIRP) of JAL. The background involves a loan of Rs 1500 crore taken by JAL from ICICI Bank on 12 December 2013. On 10 March 2014, JIL created a mortgage on its property (detailed in Schedule 1 at page 831 of the appeal paper book) to secure this loan. JIL itself entered CIRP on 09 August 2017, and its resolution plan was approved on 07 March 2023. JAL subsequently entered CIRP on 03 June 2024. On 17 February 2025, ICICI Bank served a notice under Section 13(2) of the SARFAESI Act upon JIL to take possession of the mortgaged property. JIL replied on 26 February 2025, contesting the notice. Subsequently, on 06 March 2025, an agreement was executed between ICICI Bank and JIL whereby JIL agreed to pay Rs 85 crore to get the subject property released from the mortgage; the amount was paid and the property was released. Following this payment, JIL lodged a claim for this amount with the RP of JAL on 07 June 2025. This claim was rejected by the RP via a letter dated 03 July 2025, citing that the necessary documents had not been provided. The core legal question presented to the NCLAT is whether JIL, as the mortgagor, is entitled to recover the amount it paid to the creditor (ICICI Bank) to release its property, given that this payment reduced the overall loan liability of JAL (the original debtor).

Final Outcome

The NCLAT has not issued a final ruling on the merits of the claim. The Tribunal has issued formal notice to the respondents. The RP is directed to file a reply within four weeks, and the appellant (JIL) may file a rejoinder within four weeks thereafter. The matter has been listed for the next hearing on 16 September 2026. The outcome of this appeal will determine whether JIL's Rs 85 crore claim is admitted into the claims process for JAL's insolvency.

Topics: Insolvency Law, Corporate Guarantee, Mortgage Dispute