Numbers game: PC Jeweller files 26-volume response to SBI's 19-volume insolvency plea

PC Jeweller's troubles began in February 2023, when banks decided to recall loans advanced to it.

During the hearing of State Bank of India's (SBI) insolvency plea against PC Jeweller on August 29, it transpired that both the parties had filed voluminous pleadings against each other at National Company Law Tribunal (NCLT), Delhi.

The case was listed today for arguments on admission of the insolvency plea. However, it has now been deferred to September 18, after SBI sought time to file a rejoinder to PC Jeweller's 26 volume response to its 19 volume insolvency plea. The president of the tribunal, Justice (retd) Ramalingam Sudhakar also expressed its displeasure over such voluminous pleadings filed especially in insolvency pleas. He orally remarked that it would be difficult for tribunals to adjudicate cases on time if such voluminous pleadings are filed.

During the hearing today, SBI had argued that while they had received PC Jeweller's response by email, they are yet to receive the physical copies of the same. PC Jeweller's lawyer sought time to serve the physical copy to SBI noting that it is voluminous. PC Jeweller informed the tribunal that the pleadings were voluminous as they had put all the details about litigation between them and SBI at various forums on record. The company further told the tribunal that since SBI's plea was 19 volumes, they had to file an elaborate response.

The tribunal took note of these submissions and adjourned the case to September 18. It is likely to fix a date for hearing on admission of the insolvency plea once all the pleadings come on record.

Case file:

SBI's insolvency plea first came up for hearing on July 26, the tribunal issued notice in the case and listed the case for further consideration on August 2. PC Jeweller entered an appearance in the case today and sought time to file a response, and the tribunal accordingly deferred the hearing in the case.

PC Jeweller's troubles began in February 2023, when banks decided to recall loans advanced to it after it was revealed in a filing that the company had defaulted on loans worth Rs 3,466 crore from banks and financial institutions. A loan recall is a process where the source lender requests the return of the amount advanced to the recipient or borrower.

The company, in its annual report for fiscal year 2021-22, stated that it had borrowed money from 14 banks, including SBI, Indian Bank, Union Bank and Punjab National Bank.

In the annual report, the company said it owed the banks Rs 3,278 crore, which included the interest and the base amount.

The largest lenders are SBI, with Rs 1,060 crore outstanding; Union Bank of India, with Rs 530 crore; Punjab National Bank, with Rs 478 crore; and Indian Bank, with Rs 226 crore.