The NCLT also allowed JIL’s fixed deposit holders, who have not filed their claims within the statutory timelines, to continue their claims even after approval of the resolution plan.
State-run NBCC has moved the National Company Law Appellate Tribunal (NCLAT) challenging the March 3 order of the National Company Law Tribunal (NCLT) that approved its resolution plan for debt-laden Jaypee Infratech (JIL). Hearing the NBCC’s ‘urgent’ plea on Wednesday, the two-member NCLAT bench, headed by its acting chairperson justice Bansi Lal Bhat, directed, “Meanwhile, till further orders, the approved ‘resolution plan’ may be implemented subject to outcome of this Appeal.” NCLAT has scheduled the matter for further hearing on May 15.
NBCC’s resolution plan includes handing over close to 21,800 homebuyers their units in phases over a period of three and a half years and paying off financial creditors their entire admitted claim of Rs 9,783 crore.
In its appeal to the NCLAT, NBCC alleged that the tribunal, in its order, made unilateral and arbitrary modifications of its resolution plan by allowing objections raised by dissenting creditor ICICI Bank and Yamuna Expressway Industrial Development Authority (YEIDA) even as the plan was approved by a majority of 97.36% vote in the Committee of Creditors (CoC).
In its appeal to the NCLAT, NBCC said the modifications made in the approved plan were inconsistent with the provision of the Insolvency and Bankruptcy Code (IBC). CoC had approved NBCC’s bid on December 9, 2019.
In its order, NCLT had asked NBCC to pay ICICI Bank its due in cash in 12 equal monthly instalments within 18 months, starting from six months from the approval of the resolution plan. NBCC said such a direction was “arbitrary” and on unreasonable grounds that dissenting financial creditors are entitled to payment in cash under the provisions of the code.
“The NCLT has dealt with the two issues raised by YEIDA against the resolution plan by amending the resolution plan to provide that any additional compensation will have to be paid by the SPVs, and, with respect to the additional compensation in relation to Expressway, parties can approach appropriate forum of law regarding the same,” the state-run firm said in its application.
The NCLT also allowed JIL’s fixed deposit holders, who have not filed their claims within the statutory timelines, to continue their claims even after approval of the resolution plan. This also did not go down well the NBCC.