Photo: Samrat Roy
SC asks NCLT to deal with insolvency proceedings against Jaypee

Posted: Aug 09, 2018     By Avishek Dubey

The Supreme Court on Thursday asked the National Company Law Tribunal (NCLT) to deal with the insolvency proceedings against the Jaypee Infratech Limited. The court has also restricted the group and its promoters from taking part in the fresh bidding process.

The SC further said that the corporate insolvency resolution process of JIL shall be commenced on a fresh note from Thursday for a period of 180 days and, if required, the NCLT may further grant the extension for 90 days.

The Apex Court further stated that the home buyers will be included in the committee of creditors (COC) in the insolvency proceedings under amended insolvency and bankruptcy code (IBC).

The court also said that JIL and holding company Jaiprakash Associates Ltd (JAL) will not be eligible to participate in the fresh bidding process.

“As per the court, the three qualified bidders for Jaypee Infratech, and other interested bidders can now submit fresh expressions of interest for the company,” said Pramod Kumar, a homebuyer of Jaypee Wishtown said.

“I am presently feeling betrayed by the SC. How is this different from Amrapali case? We are very disappointed with today’s decision and are thinking to take a legal opinion for the review petition,” said Kumar.

The court mentioned that the Rs 750 crore, which has been deposited in the SC, will now be transferred to the NCLT and the NCLT shall dispose of the same in an appropriate manner.

On August 2017, Chitra Sharma, a buyer filed a PIL at the Supreme Court against the decision of the National Company Law Tribunal to declare the real estate company insolvent.

The PIL came after the Allahabad bench of NCLT admitted a plea of IDBI Bank allowing insolvency proceedings against Jaypee Infratech for defaulting on Rs 526.11 crore against the bank. Almost 10,000 buyers in Noida and Greater Noida got affected by this.

TAGS: Supreme Court of India / SC asks to start insolvency against Jaypee / Jaypee Infratech Limited / National Company Law Tribunal / Bids for Jaypee insolvency / Noida news