The Supreme Court on October 23 took up Jaypee Group’s plea against the NCLAT order that barred the parent company from participating in the resolution process of the embattled firm Jaypee Infratech, but reserved its order until November 6.
Jaypee Group had pleaded that it be allowed to give a fresh proposal as it is willing to pay all dues to lenders and complete all stalled projects within three years. The group said it has built and delivered around 6,000 dwelling units to homebuyers during the insolvency proceedings.
On July 30, the National Company Law Appellate Tribunal (NCLAT) had allowed fresh bidding for JIL, but had barred its promoter Jaypee Group from participating in the auction.
The bench comprising Justices AM Khanwilkar and Dinesh Maheshwari was told by senior advocate FS Nariman, appearing for the real estate firm that around 12,000 flats were delivered to homebuyers, and around 6,000 were given during the insolvency proceedings.
“Nobody said that we swallowed the money (of homebuyers),” Nariman said.
The counsel for homebuyers opposed the plea and said they had been waiting for the last 10 years and wanted their homes, and the issue that whether they are built by Jaypee Group or by NBCC was immaterial.
Counsel for Chitra Sharma submitted that there is a window until November 14 for the revised plan by NBCC to be considered by the CoC. The latter would be permitted to consider the revised plan submitted by NBCC in the given timeline and any appeal filed ex facie by an ineligible promoter, who has been classified an NPA since March 31, 2015, will not to be permitted to delay the proceedings within the timeline prescribed under IBC.
Senior advocate Ajit Sinha argued that if the appeal is allowed, the most obvious conclusion would be liquidation which would adversely affect the interest of 20,000 homebuyers in different projects of Jaypee.
“We represent majority of homebuyers, i.e. over 5,000 homebuyers. JAL is trying a backdoor entry when it has been expressly barred. If the company is liquidated, the homebuyers would not get anything,” he said.
The apex court had said on October 17 that it first hear the appeal of Jaypee Group against the NCLAT order that barred it from participating in the auction of JIL and would deal later with the revised proposal of state-owned NBCC to complete the stalled projects of Jaypee Group.
The National Buildings Construction Corporation Ltd (NBCC) had submitted a revised plan in a sealed cover last week before the Supreme Court. The court, however, had not opened the seal of the revised plan and told that it would deal with it later.
Earlier, sources had told Moneycontrol that the government’s construction arm NBCC may consider reducing the upfront amount to lenders if it decides not to transfer Jaypee Infratech’s unsold inventory to them in the revised proposal.