NCLAT Reserves Its Order On Jaypee Infratech’s Land Mortgaged By Jaiprakash Associates Ltd To Its Lenders

The National Company Law Appellate Tribunal (NCLAT) has reserved its order on the issue of Jaypee Infratech's land mortgaged by Jaiprakash Associates Ltd (JAL) to its lenders.

Incidentally, banks had given loans to Jaiprakash Associates, which is the JP Group's flagship firm against the land bank owned by Jaypee Infratech.
The lenders include Axis Bank, Standard Chartered Bank, ICICI Bank which had challenged an earlier NCLT Allahabad order.

The NCLAT reserved its order after hearing an appeal against the order of its Allahabad bench which had asked JAL to return nearly 760 acres of land to its subsidiary Jaypee Infratech in May 2008, after declaring the transfer of the land as “fraudulent” and “undervalued”.

Earlier, the NCLT had directed JAL to release and discharge interest created over the land to lenders including ICICI Bank.

However, on May 24, the NCLAT had stayed the order.

The two-member NCLAT bench reserved its order recently after a petition was filed by leading lenders to include them in the Committee of Creditors (CoC) of Jaypee Infratech, which is going through insolvency resolution.