NEW DELHI, March 20 -- The National Company Law Appellate Tribunal (NCLAT) on Friday issued notice to the monitoring committee of bankrupt Jaiprakash Associates Ltd (JAL) on a plea by Velocity Enterprises, a Bhopal-based contractor, challenging the rejection of its claim under the insolvency process.

The appellate tribunal said the matter warranted consideration and directed that the bank guarantee furnished by Velocity should not be invoked until the next hearing. It also asked the contractor to extend the validity of the guarantee.

The notice was issued to the monitoring committee because, under the Insolvency and Bankruptcy Code, the resolution professional (RP) manages the company during the corporate insolvency resolution process (...