The Jai Prakash Associates Ltd (JAL), the parent company of the debt-ridden Jaypee Infratech Ltd. (JIL) received a blow as the Supreme Court stayed the National Company Appellate Law Tribunal's (NCLAT) judgment of giving land-bank of 858 acres to the JAL from the JIL.
Meanwhile, even as the insolvency proceedings on (JIL) are nearing final stage after the Interim Resolution Professional (IRP), resolution plans of bidders were put up for voting third time on December 10.
Sources privy to the development told CitySpidey that the apex court stayed NCLAT's judgment and directed the JAL to return the land-bank to its original owner – the JIL. "The Judgment came in favour of homebuyers. However, to avoid any hindrance in the ongoing voting and bidder selection, the court has reserved its order and it is expected to come after declaring the result of bid selection," said a homebuyer actively involved in the matter.
It would be pertinent to mention here that in May last year, an Allahabad High Court bench of NLCT had declared the transfer of ownership of 858 acres of Jaypee Infratech to its own lenders. However, in August 2019, the court had reversed the NLCT order and given control of 858-acre land to JAL.
The JAL, had mortgaged the latter's land-bank to secure a loan of Rs 20,510 crore from a consortium of around 20 banks including State Bank of India, AXIS Bank, ICICI Bank, Stander Chartered Bank.
The homebuyers of the Jaypee Infratech had then moved the Supreme Court challenging the order of the National Company Law Appellate Tribunal (NCLAT) allowing Jayprakash Associates Ltd (JAL) lenders to take control of over 858 acres of Jaypee Infratech Ltd land.
The homebuyers had also challenged NCLAT order of considering JAL-lenders as financial creditors in the JIL. The court in its judgment on December 12, observed, "After hearing fully counsel for the parties, prima facie, we are of the view that lenders-banks of JAL can not be regarded as financial creditor (s) of JIL."