INSUBCONTINENT EXCLUSIVE:
The leading court likewise directed that the resolution procedure be extended by 45 daysThe Supreme Court Wednesday remitted to the
Committee of Creditors (CoC) the concern of approval of resolution prepare for debt-ridden Jaypee Infratech Ltd (JIL), stating no brand-new
expression of interest will be captivated for taking over the firm and just state-owned NBCC and Suraksha Realty might submit modified
The leading court likewise directed that the resolution procedure be extended by 45 days.Since August 2017, when JIL went into the
insolvency procedure after the National Company Law Tribunal (NCLT) admitted the application by an IDBI Bank-led consortium, this is the
fourth round of litigation which has actually been decided by the top court.On March 3 last year, the NCLT had actually approved NBCC's
bid to get JIL through the insolvency procedure and total over 20,000 pending flats over the next 3 and half years
The order was nevertheless challenged in the appellate tribunal NCLAT and later in the Supreme Court.A bench of Justices A M Khanwilkar,
Dinesh Maheshwari and Sanjiv Khanna used the leading court's plenary powers under Short article 142 of the Constitution to do substantial
and total justice to the parties and in the interest of stakeholders of JIL
The matter relating to approval of the resolution strategy stands remitted to the Committee of Creditors of JIL and the time for conclusion
of the process connecting to CIRP of JIL is extended by another duration of 45 days from the date of this judgment, the bench stated in its
375-page verdict.It likewise held that Rs 750 crore transferred by Jaypee group in the top court and later transferred to NCLT is the
property of Jaiprakash Associates Ltd (JAL) and the terms in the resolution plan concerning its usage by JIL or the resolution applicant can
not be approved.It said, However, the final treatment of the said amount of Rs 750 crores with accumulated interest will be figured out by
NCLT after the reconciliation of accounts between JAL and JIL and in terms of the directions contained in this judgment
The bench directed the Interim Resolution Specialist (IRP) to finish the Corporate Insolvency Resolution Process (CIRP) within the extended
time of 45 days from Wednesday
For this purpose, it will be open to the IRP to invite modified/fresh resolution plans just from Suraksha Real estate and NBCC respectively,
providing time to submit the very same within 2 weeks from the date of this judgment, the bench said.The leading court, which passed its
verdict on a batch of appeals versus the NCLAT's in 2015 order and fresh petitions, said: It is explained that the IRP shall not
entertain any expression of interest by any other person nor shall be needed to release any brand-new information memorandum
The bench, which decided the case in 4th round of litigation in the top court, said that the resolution candidates will be anticipated to
proceed on the basis of the details memorandum already provided by IRP and likewise take into account the facts saw and findings taped in
this judgment.It included that the IRP will take all additional steps in the way that the processes of ballot by the Committee of Creditors
and his submission of report to the Adjudicating Authority (NCLT) are accomplished in all aspects within the prolonged period of 45 days
from the date of this judgment
The Adjudicating Authority will take final decision in regards to Area 31 of the Code (Insolvency and Personal bankruptcy Code)
expeditiously upon submission of report by the IRP
The bench stated that its instructions, especially for enhancement of time to finish the process of CIRP, are being released in
extraordinary scenarios of today case and will not be treated as a precedent.It stated the proceedings considered in its verdict shall be
taken up by the Principal Bench of the NCLT at New Delhi.On August 6 in 2015, the top court had transferred to itself the appeals pending
before the National Company Law Appellate Tribunal (NCLAT) against the NBCC strategy to get JIL and construct over 20,000 pending flats.It
had actually also remained the operation of the April 22, last year order of the NCLAT till the next date of hearing by which it had
provided conditional consent to state-owned-NBCC to acquire JIL and construction of stalled projects.The NCLAT had actually asked NBCC to
execute its proposition to get financial obligation ridden JIL and complete over 20,000 pending flats, but said that its instructions was
subject to its final order.The NCLAT's direction had actually come by a plea moved by the NBCC, which won the quote to acquire JIL
The NBCC has actually challenged the modifications made by the NCLT in the original resolution plan sent by it and as approved by the CoC of
JIL.While approving the resolution strategy of NBCC, the NCLT had permitted objections of ICICI Bank and Yamuna Expressway Industrial
Advancement Authority and directed payment to unclaimed Fixed Deposit Holders.The NCLT had actually also purchased that the Rs 750 crore
deposited by Jaypee Infratech's parent firm JAL with the computer system registry of the Supreme Court would belong to the resolution plan
saying that it will assist NBCC in faster conclusion of stalled tasks of Jaypee Group.
