HC completes hearing in Abhijeet Group’s claim against Neco

Nagpur: The Nagpur bench of Bombay High Court has closed the winding up petition against Jayaswal Neco Limited (JNL) for order. The petition has been moved by Abhijeet Group, which is headed by Manoj Jayaswal, the son of BL Shaw, who heads the Neco group.
This suit is for liquidation of Neco Group to recover dues arising out of the partition of the family business. Abhijeet Group is demanding Rs100 crore from the Neco Group.This relates to a loan owed by Corporate Ispat Alloys Limited (CIAL) before it came over to Abhijeet Group after the partition
Neco’s debt was serviced by Abhijeet Group on the condition that the amount will be reimbursed by the latter. However, Abhijeet Group claims that Rs100 crore remains unpaid from Neco’s side.
It filed a winding up petition on the grounds that Neco Group is not in a position to meet its commitments and should be liquidated to recover the dues. In the last hearing, Manoj Jayaswal filed an affidavit in his personal capacity saying that Neco Group’s loan accounts have turned into NPA from June 30 onwards. This was to bolster Abhijeet Group’s claim that the company is not in a position to meet its financial commitments and hence was declared a NPA.