Supreme Court Gives Relief To Home Buyers; Directs Jaypee Infra To Finish Insolvency Resolution Process Within 90 Days
By : Legal Era
Update: 2019-11-06 13:02 GMT
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[ By Bobby Anthony ]The Supreme Court has directed completion of Jaypee Infratech Ltd’s corporate insolvency resolution process within 90 days to give relief to home buyers.A bench of Justice A M Khanwilkar and Justice Dinesh Maheshwari said that it is passing directions in an “exceptional situation” to do complete justice to home buyers, Jaypee group and banks concerned.The court...
The Supreme Court has directed completion of Jaypee Infratech Ltd’s corporate insolvency resolution process within 90 days to give relief to home buyers.
A bench of Justice A M Khanwilkar and Justice Dinesh Maheshwari said that it is passing directions in an “exceptional situation” to do complete justice to home buyers, Jaypee group and banks concerned.
The court also stated that the revised resolution plan will be invited only from NBCC and Suraksha Realty.
The Supreme Court stated that the pendency of any other application before the National Company Law Tribunal (NCLT) or National Company Law Appellate Tribunal (NCLAT), including any interim direction, should be no impediment for the Insolvency Resolution Professional to receive as well as process the revised resolution plan from the two bidders.
“We direct the Insolvency Resolution Professional to complete the Corporate Insolvency Resolution Process within 90 days from today. In the first 45 days, it will be open to the Insolvency Resolution Professional to invite revised resolution plan only from Suraksha Realty and NBCC respectively, which were final bidders and had submitted resolution plan on earlier occasion and place the revised plan(s) before the Committee of Creditors (CoC), if so required, after negotiations and submit report to adjudicating authority NCLT within such time,” the bench stated.
The court stated that in the second phase of 45 days, commencing from 21st December 2019, margin has been provided to remove any difficulty and to pass appropriate orders thereon by the adjudicating authority.
The bench passed the order on the plea by Jaypee Group against the NCLAT verdict which had barred it from participating in the auction of its debt-ridden group firm JIL.
It may be recalled that on July 30, 2019, the NCLAT had allowed fresh bidding for the cash-strapped Jaypee Infratech Ltd but had barred its promoter Jaypee Group from participating in the auction.