After NCLAT extends insolvency period, SC orders status quo on Jaypee Infra plea

Photo: CitySpidey
Posted: Aug 02, 2019

Two days after the National Company Law Appellate Tribunal (NCLAT) extended resolution period for another 90 days to debt-ridden Jaypee Infratech, the Supreme Court on Friday ordered status quo on a plea for challenging tribunal’s directive. Jaypee Group had filed a plea in the top court seeking its intervention on NCLAT’s order.

The bench of Justice A M Khanwilkar and Justice Dinesh Maheshwari was informed that the Parliament has passed a proposed amendment to the Insolvency and Bankruptcy (IBC) Bill, following which the court ordered status quo for two weeks. “We have not seen the amendment, let it come and we will see,” the court said.

As mentioned that on July 30, NCLAT had allowed fresh bidding for the cash-trapped Jaypee Infratech, barring its promoter Jaypee Group.

The NCLAT’s direction came in view after lenders rejected the resolution plan of state-owned National Building Construction Company (NBCC) and Suraksha Reality in the second round of bidding. Jaypee Infratech went into bankruptcy in August 2017 after the National Company Law Tribunal (NCLT) admitted that an application was filed by its highest lender IDBI Bank.

The tribunal has granted 45 days to Interim Resolution Professional (IRP) for inviting fresh resolution bids and next 45 days for completing other legal liabilities in resolving Jaypee Infratech issue which is affecting the interest of nearly 42000 flat buyers in Noida and Greater Noida.

TAGS: NCALT / Jaypee Infratech / Supreme Court / NCLT / NBCC / IRP