 "PC Jeweller faces insolvency plea by SBI, NCLT adjourns hearing till Aug 21")
Public sector lender State Bank of India (SBI) has taken PC Jeweller to the National Company Law Tribunal (NCLT) with a plea to initiate insolvency proceedings against the city-based jewellery manufacturer and retailer claiming a default.
A Delhi-based principal bench of NCLT had issued a notice to PC Jeweller last week directing it to file a reply over the plea filed by its financial creditor SBI under section 7 of the Insolvency & Bankruptcy Code.
The principal bench headed by its President Justice Ramlingam Sudhakar had directed the matter to be listed as SBI's plea on August 2 for further consideration.
However, when the matter was adjourned on Wednesday the counsel appearing for PC Jeweller sought more time to file a reply over the notice issued over SBI's plea.
Following this, the insolvency tribunal has directed to list the matter on August 21 for the next hearing.
PC Jeweller has been engaged in the business of trade, manufacturing and sale of gold, diamond, silver, precious stone, gold jewellery/items, diamond studded jewellery and silver articles of various designs/specifications.
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In its latest quarterly results, PC Jewellers said the company's borrowing accounts are 'Non-Performing Assets (NPA) with all the banks.
"Total exposure outstanding as on 31 March, 2023 amounting to Rs 3,626.09 crore includes provision for interest up to 31 March, 2023 (the company has however disputed the same legally), which has been calculated based on management's estimates, which stands accrued but not applied by banks post NPA down-gradation," it said.
Some of the banks have provided confirmation of the outstanding amount, including interest up to 31 March, 2023, whereas some of the lenders have provided figures without applied interest.
"Company's accounts have been classified as NPA with its lenders since June 2021 and its resolution process had been underway," said PC Jeweller in its results for the quarter ending on March 31, 2023.
SBI is the lead bank for the consortium of lenders.