A Debt Recovery Tribunal (DRT) has restrained Manoj Gaur, the erstwhile promoter of the bankrupt Jaypee Infratech (JIL), from divesting any of his assets till the pendency of a case relating to recovery of dues worth Rs 10,263 crore from him by IDBI Bank. He has also been directed to seek prior permission of the tribunal before travelling abroad.
At the last hearing on the case at DRT Delhi, on April 29, IDBI Bank’s counsel Siddharth Sharma said the original application (OA) is for recovery of over Rs 10,263 crore and that there is an “apprehension” that defendant (Manoj Gaur) will dispose off his personal assets. After hearing IDBI Bank’s plea, the tribunal said, “Looking into the facts and circumstances of this OA, let notice on prayer at para 7 (a) be issued to defendant no 1 (Gaur), inviting its reply. Meanwhile defendant no 1 is directed to maintain status quo qua their assets, till next date of hearing.”
Gaur was also directed to disclose on affidavit his assets, movable and immovable, before the tribunal on or before next date of hearing, which is scheduled for May 29.
When contacted, a JIL spokesperson said, “To the best of our knowledge, we have not received any notice from the DRT”. Calls and messages to Gaur did not did not elicit any response till the time of going to the press. However, the proceedings against Gaur at the DRT will not have any bearing on the corporate insolvency resolution process (CIRP) of JIL as the case relates to the personal guarantee given by Gaur to the bank.
According to a Supreme Court order in SBI Vs V Ramakrishnan & Anr case, proceedings against guarantors and insolvency can go on concurrently. Gaur has been trying to offer incentives to around 24,000 JIL home buyers, who control 58.1% voting share in the committee of creditors (CoC), to back his revised offer for the firm. Last month, he sweetened his earlier plan submitted in February and is now offering Rs 97 crore towards as delayed compensation, relief on stamp duty, shareholder status in the firm and one year free maintenance of flats. He has also proposed to deliver homes under Wish Town projects at Noida, Mirzapur and Agra (around 19,197 units) within three years of approval of his plan and the remaining 1,327 units, also at Mirzapur, will be delivered in the fourth year.