Jaypee Infra insolvency: SC asks NCLT to decide in two months

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November 23, 2021 9:05 AM

The IDBI Bank-led consortium had initiated insolvency proceedings against JIL for failing to repay total debt of around Rs 24,000 crore. The NCLT, Allahabad, on August 9, 2018 had admitted the consortium’s plea.

Counsel Shashank Manish, appearing for the homebuyers, argued that repeated delays in the insolvency process were adversely affecting the rights of homebuyers.

The Supreme Court on Monday asked the National Company Law Tribunal (NCLT) to expeditiously decide within two months real estate firm Jaypee Infratech’s (JIL) insolvency proceedings, which started way back in August 2018.

A bench led by Justice AM Khanwilkar gave the directions on a petition by the Jaypee Kensington Boulevard Apartments Welfare Association, which sought “speedy and expeditious disposal” of the case.

Counsel Shashank Manish, appearing for the homebuyers, argued that repeated delays in the insolvency process were adversely affecting the rights of homebuyers. He said that homebuyers were suffering for a prolonged period as they have invested their life savings and have been running from pillar to post for a flat.

“The already existing structures of the unfinished towers are getting weakened and are losing structural integrity owing to the weather conditions. Therefore, the condition of existing structures of the unfinished towers is only going to deteriorate with passage of time. Hence, it is humbly submitted that if appropriate action of completion of CIRP, appointment of successful resolution applicant and resumption of work in full force is not done in a time bound manner it will destroy all hopes and dreams of the homebuyers of getting their homes,” the petition stated.

The homebuyers also accused NCLT, Delhi, of “acting in a casual manner” by adjourning the matter several times without following the directions given by the SC for expeditious completion of CIRP in terms of Section 31 of the IBC.

The NCLT had in September 28 decided to hear the pleas for granting approval to the Mumbai-based Suraksha Group plan for the takeover of the embattled firm. While the Supreme Court had on March 24 remanded the JIL case back to the NCLT for fresh voting, and extended the timeline for completion of the corporate insolvency process by 45 days, the lenders had on June 23 approved the Suraksha’s resolution plan by an overwhelming majority. The apex court had then directed that only state-run NBCC Ltd and Suraksha Realty will be eligible to submit fresh plans before the Committee of Creditors of JIL.

The apex court had in August last year transferred to itself all the appeals pending before the NCLAT to ensure that there is no further delay in execution of the approved resolution plan of state-owned NBCC and 20,000 homebuyers, who have been left in lurch, get the possession of their stalled flats.

The IDBI Bank-led consortium had initiated insolvency proceedings against JIL for failing to repay total debt of around Rs 24,000 crore. The NCLT, Allahabad, on August 9, 2018 had admitted the consortium’s plea.

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