Jaypee Infra resolution: Jaiprakash Associates moves NCLAT against NCLT order

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Jaypee Infra resolution: Jaiprakash Associates moves NCLAT against NCLT order

Jaiprakash Associates (JAL), the parent firm of Jaypee Infratech (JIL), has moved the National Company Law Appellate Tribunal (NCLAT) challenging the March 3 order of the National Company Law Tribunal (NCLT).

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Jaiprakash Associates (JAL), the parent firm of Jaypee Infratech (JIL), has moved the National Company Law Appellate Tribunal (NCLAT) challenging the March 3 order of the National Company Law Tribunal (NCLT), which made the Rs 750 crore it deposited with the registry of the Supreme Court a part of the approved bidder NBCC’s resolution plan for JIL.

NBCC had, in its resolution plan, said that it might withdraw its resolution plan in case the amount, along with interest, was not made available with it. The NCLT approved state-run NBCC’s resolution plan for JIL on March 3, 2020. Directed by the Supreme Court, JAL had deposited the fund towards refund of homebuyers’ money. The apex court had on August 9, 2018 directed the NCLT to decide on the fund.

“Promoters of JIL have challenged the NCLT order, arguing that the money should not be given to NBCC,” said advocate Bishwajit Dubey, who appeared on behalf of lead banker IDBI in the NCLAT on Friday.

Advocate Sumant Batra, who appeared on behalf of the resolution professional, said that the NCLT was asked by the Supreme Court to decide on the fund deposited with the apex court’s registry by the JIL’s promoters.

Batra said the two-member NCLAT bench, headed by its acting chairperson justice Bansi Lal Bhat, has directed IDBI, IRP, NBCC and others to file their responses on the JIL’s promoters’ plea within two weeks and posted the matter for further hearing on June 19.

NBCC also, meanwhile, moved NCLAT challenging the NCLT order. In its appeal, NBCC had alleged that the NCLT 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 97.36% vote in the Committee of Creditors (CoC).

Hearing on NBCC’s appeal, the appellate tribunal had on April 22 had given conditional approval to NBCC’s resolution plan.

Source- Financial Express.