ALSO READJaiprakash Associates leads losers in 'A' group Jaiprakash Associates leads gainers on BSE's 'A' group Supreme Court moves to protect Jaypee Infratech home buyers Jaiprakash Associates, Jaypee Infratech shares fall up to 10% Pay Rs 50 lakh to 10 buyers for delayed flats, SC tells JP Associates
NEW DELHI (Reuters) - India's top court on Wednesday maintained a ban on sale of assets or a stake in Jaiprakash Associates Ltd, while saying it would hear at a later date a plea by the central bank seeking to push the infrastructure company into insolvency proceedings.
Jaypee Infratech Ltd, a group company of Jaiprakash Associates, is already being pursued in the bankruptcy court over loan defaults.
RBI wants Jaiprakash Associates' creditor banks to push the company into insolvency resolution proceedings, but the Supreme Court order restricting sale of assets would obstruct that, bankers and lawyers have said.
As part of the insolvency resolution, creditors would need to seek bids for assets or a stake in the company.
(Reporting by Suchitra Mohanty; Writing by Devidutta Tripathy; Editing by Simon Cameron-Moore)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)