Engineering and construction firm Punj Lloyd on Tuesday got some more time from the National Company Law Tribunal (NCLT) to enter into settlement agreements with its lenders to clear the dues.
A two-member bench headed by Justice M M Kumar directed Punj Lloyd to file its reply to the insolvency petition filed by private lender ICICI Bank, if it fails to reach settlement with its lenders by the next date of hearing.
The tribunal directed to list the matter on December 11 for next hearing.
During the proceedings, the counsel appearing for Punj Lloyd informed the tribunal that the settlement process is going on with the consortium of 31 banks.
“We would file it before the next date of hearing,” he said.
However, senior advocate Ramji Srinivasan, appearing for ICICI Bank said that if Punj Lloyd fails to file the settlement agreement with banks, then it should file reply of the insolvency plea filed by it under section 7 of the Insolvency and Bankruptcy Code.
The tribunal agreed on his submissions.
Last month, International Finance Corporation had filed insolvency plea against Punj Lloyd before NCLT to recover its dues.
In June, ICICI Bank had approached NCLT to recover Rs 830 crore of outstanding loans to Punj Lloyd.
However, majority of its lenders including SBI had opposed ICICI’s insolvency plea.