The Supreme Court on Wednesday barred Jaypee Group from taking part in resolution process to acquire stalled projects of Jaypee Infratech. Hearing the matter, the top court also directed completion of corporate insolvency resolution process within 90 days.
The Group had pleaded the court to allow it to give a fresh proposal assuring that it would pay all the dues of lenders and complete all the stalled projects within three years. However, the counsel appearing for homebuyers had opposed Jaypee Group’s plea, saying the homebuyers have been waiting for their flats for nearly a decade.
Therefore, the government-owned National Buildings Construction Corporation (NBCC) should take over stalled projects.
The apex court also ruled that revised resolution plan will be invited only from NBCC and Suraksha Realty Group. Both, NBCC and Suraksha reality had submitted their resolution plans earlier too, however, resolution process was not approved by Committee of Creditors (CoC) on previous occasions.
The apex court said the pendency of any other application before the NCLT or NCLAT, including any interim direction, shall be no impediment for the IRP to receive and process the revised resolution plan from the two bidders.
A bench of justices AM Khanwilkar and Dinesh Maheshwari said it is passing directions in an ‘exceptional situation’ to do complete justice to homebuyers, Jaypee Group and banks concerned. “We direct the IRP to complete the CIRP within 90 days from today,” the court said.
“In the first 45 days, it will be open to the IRP to invite revised resolution plan only from Suraksha Realty and NBCC respectively, which were final bidders and had submitted resolution plan on earlier occasion and placed the revised plans before the CoC, if so required, after negotiations and submit report to adjudicating authority NCLT within such time,” the bench said.
“In the second phase of 45 days commencing from December 21, 2019, margin is provided for removing any difficulty and to pass appropriate orders thereon by the adjudicating authority,” the top court said.
On July 30 this year, the National Company Law Appellate Tribunal (NCLAT) had allowed fresh bidding for the cash-strapped JIL but had barred its promoter Jaypee Group from participating in the auction.