The Supreme Court on Monday gave four week extension to Anuj Jain, the insolvency and resolution professional (IRP), to complete the insolvency process of debt-laden Jaypee Infratech.
A Bench led by Justice AM Khanwilkar gave the extension of four weeks after the IRP argued that a large number of applications, including objections to the approved resolution plan of government firm National Buildings Construction Corporation (NBCC ), and various complex questions of law pending before the NCLT. The 90-day extension granted earlier by the apex court to complete the insolvency proceedings expired on Monday (February 3).
Jain also apprised the court that the NBCC’s resolution plan was approved by the committee of creditors (CoC) with a majority of 97.36% on December 16. The apex court had last year in November barred parent firm Jaiprakash Associates from bidding for the embattled firm’s assets, but allowed only NBCC and Suraksha Realty to submit their revised bids for takeover of stalled residential projects.
During the arguments, there was complete unanimity between all the stakeholders that the liquidation of JIL must be eschewed as it would do more harm to the interests of the stakeholders, in particular the large number of homebuyers, who aspire to have their home at the earliest.
The NCLAT had also earlier extended the insolvency resolution period of JIL for 90 days during which fresh bids by NBCC, Adani Infrastructure and Development, among others, for the company was allowed. The Centre is also supporting NBCC takeover of JIL’s unfinished projects as it had told the SC that it would waive taxes, running into crores, if NBCC was to take over the embattled real-estate firm. IDBI Bank-led consortium had initiated insolvency proceedings against JIL for failing to repay debt of around Rs 24,000 crore. The NCLT, Allahabad, had admitted the consortium’ plea.
Source: Financial Express, February 4, 2020