Complete Corporate Insolvency of Jaypee Infra Ltd in 90 Days: SC

The Supreme Court on 9 October allowed insolvency resolution professional Anuj Jain, to takeover the management of Jaypee Infratech Ltd.

(Photo Courtesy: Jaypee)

In a jolt to the Jaypee Group, the Supreme Court on Wednesday, 6 November, directed completion of corporate insolvency resolution process within 90 days for Jaypee Infratech Ltd and said the revised resolution plan will be invited only from NBCC and Suraksha Realty.

The apex court said the pendency of any other application before the NCLT or NCLAT, including any interim direction, shall be no impediment for the IRP to receive and process the revised resolution plan from the two bidders.

A bench of justices AM Khanwilkar and Dinesh Maheshwari said it is passing directions in an "exceptional situation" to do complete justice to home buyers, Jaypee group and banks concerned.

The Bench said:

“We direct the IRP to complete the CIRP within 90 days from today. In the first 45 days, it will be open to the IRP to invite revised resolution plan only from Suraksha Realty and NBCC respectively, which were final bidders and had submitted resolution plan on earlier occasion and place the revised plan(s) before the Committee of Creditors (CoC), if so required, after negotiations and submit report to adjudicating authority NCLT within such time,”

"In the second phase of 45 days commencing from 21st December 2019, margin is provided for removing any difficulty and to pass appropriate orders thereon by the adjudicating authority," the top court said.

The bench passed the order on the plea by Jaypee Group against the NCLAT verdict which had barred it from participating in the auction of its debt-ridden group firm JIL.

On 30 July this year, the National Company Law Appellate Tribunal (NCLAT) had allowed fresh bidding for the cash-strapped JIL but had barred its promoter Jaypee Group from participating in the auction.