JAL approaches NCLAT against NCLT order on Jaypee Infratech matter

Jaiprakash Associates has approached the insolvency appellate tribunal NCLAT against the NCLT order relating to the distribution of Rs 750 crore in the Jaypee Infrastructure matter.

The amount was deposited with the Supreme Court registry by Jaiprakash Associates Ltd (JAL), the erstwhile promoter of Jaypee Infratech Ltd (JIL), which is going through insolvency proceedings since August 2017.

JAL had challenged the NCLT order over the distribution of money, sources said.

As per the NCLAT cause list, the matter between JAL and JIL is scheduled for hearing on Tuesday before a two-member bench of the National Company Law Appellate Tribunal (NCLAT).

In an order on March 7, the National Company Law Tribunal (NCLT) approved the Mumbai-based Suraksha group's bid to buy Jaypee Infratech Ltd (JIL), a development that comes as a relief for more than 20,000 homebuyers nearly six years after the debt-ridden company entered into the insolvency process.

In its 491-page order, the NCLT had directed that JIL will get Rs 542.62 crore out of Rs 750 crore deposited by Jaiprakash Associates Ltd (JAL) in the registry of the Supreme Court while Rs 106.9 crore will go to an escrow account of homebuyers.

JAL will get Rs 100.48 crore, the NCLT order said.

As per the order of the Supreme Court, JAL had in 2018 deposited a total of Rs 750 crore in several tranches before the registry of the apex court.

"We direct the Registrar NCLT through Registry of NCLT, Allahabad, that out of the total amount of Rs 750 crores and accrued interest thereon, an amount of Rs 649.52 crore along with proportionate interest shall be paid to the JIL/Homebuyers of JIL and the remaining amount of Rs 100.48 crores along with proportionate interest shall be returned to JAL...," the tribunal had said.

The corporate Insolvency Resolution Process (CIRP) against JIL was started in August 2017 on an application by IDBI Bank-led consortium.

In the fourth round of the bidding process to find a buyer for JIL in 2021, the Suraksha group won the bid with 98.66 per cent votes. As many as 12 banks and more than 20,000 homebuyers have voting rights in the CoC.

The company had got 0.12 per cent more votes than state-owned NBCC, which was also in the fray.