Insolvency Resolution Professional to Takeover Jaypee Infra: SC

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

(Photo Courtesy: Jaypee)

• Jaypee Associates, the parent company of Jaypee Infratech, told to deposit Rs 2000 crore
  
• IRP to submit interim resolution plan in 45 days, to also consider homebuyers’ interests
  
• MD and directors, other than nominee directors of lenders, of Jaypee Infratech and Jaypee Associates barred from leaving the country without court’s permission
  
• Amicus curiae appointed to assist proceedings by IRP

The Supreme Court on Monday 9 October allowed insolvency resolution professional (IRP) Anuj Jain, appointed by the National Company Law Tribunal, to takeover the management of Jaypee Infratech Ltd. and asked its parent company to deposit Rs 2,000 crore.

The managing director and directors of Jaypee Infratech (at the time of initiation of insolvency proceedings) and of parent Jaypee Associates Ltd. cannot leave the country without the court's permission, the top court said, while allowing nominee directors of the lenders to do so.

Also Read: You’ll Get Your Money Back: SC Assures Jaypee Homebuyers

The IRP will have to submit the interim resolution plan to the court within 45 days, which will also consider the interest of the home buyers.

The court also appointed an amicus curiae who will also attend the meetings to represent the interest of the home buyers.

Also Read: Jaypee Infratech Insolvency FAQs: What Should Homebuyers Do Now?

The National Company Law Tribunal on 11 August had admitted state-run IDBI Bank Ltd.’s plea seeking resolution under the Insolvency and Bankruptcy Code. The tribunal’s Allahabad bench appointed Anuj Jain as the interim resolution professional.

Homebuyers challenged the move, arguing that being unsecured creditors, they will not receive anything from the insolvency proceedings as the dues of financial institutions would be cleared first.

(This article was first published on BloombergQuint and has been republished with permission.)

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