scorecardresearch
Saturday, Dec 03, 2022

Jaypee Infratech: Supreme Court asks NCLT to deal with insolvency proceedings

The NCLT will hold a fresh hearing of the insolvency proceedings started by IDBI against JIL, after the firm defaulted in paying back a loan of Rs 526 crore.

SC asks NCLT to deal with insolvency proceedings against Jaypee group The court said that the initial period of 180 days for the conclusion of insolvency proceedings would commence from today. If needed, the NCLT can extend this by another 90 days.

The Supreme Court on Thursday transferred all matter related to Jaypee Intratech Ltd (JIL) pending before it to the National Company Law Tribunal (NCLT), Allahabad, and ordered fresh insolvency proceedings against the beleaguered real estate major.

A three-judge bench headed by Chief Justice of India Dipak Misra also directed that home buyers be included in the committee of creditors (CoC) which has to be constituted afresh in accordance with the provisions of the Insolvency and Bankruptcy (Amendment) Ordinance, 2018. The bench also allowed the Reserve Bank of India (RBI) to direct banks to initiate corporate insolvency resolution proceedings against JIL’s parent company Jaypee Associates Limited (JAL). It said that facts “clearly indicate the financial distress of JAL and JIL”.

The court turned down JAL’s plea to allow it to participate in the fresh bidding process for JIL.

The NCLT will hold a fresh hearing of the insolvency proceedings started by IDBI against JIL, after the firm defaulted in paying back a loan of Rs 526 crore. The court said that the initial period of 180 days for the conclusion of insolvency proceedings would commence from today. If needed, the NCLT can extend this by another 90 days.

Subscriber Only Stories
UPSC Essentials| Weekly news express with MCQs : Project GIB, Remittances...Premium
Delhi Confidential: Why CJI Chandrachud says children should be taught as...Premium
Shaped by war: Ukraine artist to showcase work at Kochi-Muziris BiennalePremium
Most drones crossing border originate from Pak Rangers outposts: AgenciesPremium

The apex court also ordered transfer of Rs 750 crore deposited with its Registry by JAL/JIL ling with the accrued interest to the NCLT. The court had asked the firms to deposit the money with it so that it can disburse it to the homebuyers who wanted refund of their money.

On the homebuyer’s demand, the court said though this deserves to be considered with “empathy”, the same cannot be acceded to. The judgement referred to the data placed before it by an advocate, assisting the court as an amicus curiae, which indicated that eight per cent of home buyers wanted refund while 92 per cent preferred possession of homes.

“Directing disbursement of the amount of Rs 750 crore to the home buyers who seek refund would be manifestly improper and cause injustice to the secured creditors since it would amount to a preferential disbursement to a class of creditors,” it said.

First published on: 09-08-2018 at 02:25:13 pm
Next Story

Over 63,500 schools have gone digital in Maharashtra: Devendra Fadnavis

Latest Comment
Post Comment
Read Comments
Advertisement
Advertisement
Advertisement
Advertisement
close