NCLAT grants stay on liquidation order passed against Jyoti Structures

According to the IBC regulations, any resolution plan needs to be approved by a minimum of 66 per cent of the lenders

The National Company Law Appellate Tribunal (NCLAT) has granted a stay on the liquidation order passed against insolvent firm Jyoti Structures. The stay order comes after a group of investors led by Sharad Sanghi and 800 employees of the corporate debtor appealed against it.

Jyoti Structures is the first case ordered for liquidation from the Reserve Bank of India’s first list of 12 large corporate debtors to be admitted for insolvency proceedings.

Sanghi, the founder of Netmagic Solutions, and a group of investors were the only applicants interested in acquiring the company. The other investors include Madhusudan Kela,