While hearing the case, the tribunal observed that the only way out is to complete the infrastructure and allot it to the allottees.
Amid no respite to the flat buyers of Jaypee Infratech after three resolution plans (including Surkasha and NBCC) were rejected by the lenders during e-voting, the National Company Law Appellate Tribunal (NCLAT) has given a reason to revive hopes of over 20,000 flat buyers.
While hearing the case, the tribunal observed that the only way out is to complete the infrastructure and allot it to the allottees. Meanwhile, the court has also directed lenders (banks), financial creditors (buyers) and other stakeholders to appear before it on July 17.
The tribunal is likely to hear stakeholders and lenders on how state-owned National Building Construction Company’s (NBCC) bid could be ‘recast’ in a manner that is beneficial to all.
“In a real estate business, the business is limited to a particular project and primary business is to allot constructed area to the allottees. For keeping the company a going concern and for maximization of the assets, the only way is to complete the infrastructure and to allot it to the allottees,” the NCLAT order said.
The tribunal also emphasised that it’s priority to take care of the interest of the home buyers.
“For hearing such issue, we intend to hear one of the representative of the lenders (banks), representative of the NBCC (resolution applicant) who is dealing with the resolution plan, representative of the allottees (one or two lawyers), resolution professional and other stakeholders of fixed deposit holders to know as to what are the factors to be noticed in a proposed resolution plan for the purpose of finding out the validity and feasibility and other aspects whether the NBCC should be allowed to recast its plan in a manner which is beneficial to the allottees and which may amount to maximization of the assets of the 'Corporate Debtor' and other stakeholders including the lenders, fixed deposit holders,” the order read.
It also directed the Committee of Creditors (CoC) to produce the gist of the resolution plan submitted by the NBCC by filing a chart showing the objection, if any, which the dissenting members of the CoC raised for rejecting the plan.
Flat buyers were of the view that the tribunal may prevail over both parties to agree to something which is agreeable. “NBCC and IDBI may have to solve their differences and step back on their hardline positions,” said a flat buyer.
The tribunal was informed on July 2 that in the voting that took place on NBCC’s bid, 34.75 per cent of home buyers voted in favour, 1.44 per cent voted against, whereas 23.8 per cent did not vote. However, all the 13 banks, which constitute 40.75 per cent of Committee of Creditors (CoC) voted against the bid by the state-run firm to acquire Jaypee Infratech.
The development which has come as relief for home buyers at the time when the association of home buyers has approached the Supreme Court with a plea to save Jaypee Infratech from going into liquidation.
After rejection of resolution plans by Suraksha and NBCC and the deadline for the corporate insolvency resolution process is over, home buyers are having a sense of fear that if the firm goes into liquidation, it would cause irreparable loss to thousands of home buyers. The apex court is likely to hear home buyers' plea next week.