The National Company Law Appellate Tribunal (NCLAT) has ordered the constitution of a monitoring committee for day-to-day governance of Jaypee Infratech Limited (JIL) till the beleaguered real estate company is handed over to NBCC.
JIL was till March 3 operated by insolvency resolution professional Anuj Jain. It has had no legal signatory since as state-run construction major NBCC refused to take over the company in March and moved NCLAT to challenge the National Company Law Tribunal’s final order in the insolvency hearing of JIL.
The NCLAT order was passed by its acting chairman Justice Bansi Lal Bhat on Wednesday. Jain, NBCC, and three main JIL lenders will be part of the monitoring committee, the tribunal ordered.
NBCC challenged NCLT’s order on March 20 because of some financial responsibilities transferred to it by the insolvency court that included additional farmers’ compensation and payoff to fixed deposit holders with JIL.
“We had challenged the order of the NCLT when it imposed these additional financial responsibilities on us because it is a breach of the Insolvency and Bankruptcy Code. These costs were not disclosed to us before we submitted our resolution proposal,” a senior NBCC official said.
Buyers at Wish Town, where the bulk of JIL’s incomplete projects are, expect another frustrating round of delays. “The case has been dragging since 2017, and now with further legal entanglements, the completion and handover of Jaypee flats has surely got postponed again,” said Jaishree Swaminathan, a Wish Town buyer said.
Both homebuyers and banks overwhelmingly voted for NBCC to take over JIL, capping a long and complex resolution process that began in 2017. The next date for the NCLAT hearing is May 15.
Source- Times of India.