Keep ready sizeable amount, SC tells Jaypee

The Supreme Court on Monday told Jaypee Associates to keep ready a sizeable amount of Rs 2,000 crore before its next hearing as it refused to permit it to deposit a part amount of Rs 400 crore by Friday.

A bench of Chief Justice Dipak Misra, Justice A.M. Khanwilkar and Justice D.Y. Chandrachud asked the real estate major to keep ready the amount as company counsel Anupam Lal Das said they have Rs 50 crore "ready in hand" and will arrange for another Rs 350 crore by Friday.

He said the Jaypee Associates will deposit Rs 400 crore every month starting with January.

"You sell your assets. We are not permitting to deposit it. It should be a sizable amount", the bench said as Das told the court that no company has this kind of liquidity and the group was "under debt restructuring" and would need the creditors' permission to even to sell their assets.

But the court was not moved. "First deposit the amount, then we will hear," the bench told counsel.

The top court had directed the real estate major to deposit Rs 2,000 crore to protect the interest of the home buyers of Jaypee Infratech -- its wholly owned company -- which is under restructuring on the orders of the Allahabad bench of the National Company Law Tribunal.

The IDBI had moved the NCL) for default of payment against the loan taken by it. IDBI Bank has sought recovery of Rs 526 crore from the company.

The top court had on September 11 directed Jaypee Associates to deposit Rs 2,000 crore with its registry by October 27.

The proceedings before the top court is rooted in a plea by unsecured creditors -- who are flat buyers -- to challenge an August 9 order of the NCLT's Allahabad Bench to appoint an nterim Resolution Professional (IRP) on IDBI Bank's plea for recovery of Rs 526 crore from Jaypee Infratech.

The top court by its September 11 order had restrained the Managing Director and all Directors of both the companies from leaving the country. However, Directors nominated by lender banks -- IDBI Bank, ICICI and the State Bank of India -- were exempted.

The court, by this order, had appointed senior counsel Shekhar Naphade and advocate Shubhangi Tuli to represent the home buyers at the meetings of the Committee of Creditors that would consider the plan for restructuring Jaypee Infratech by the IRP appointed by the NCLT.

--IANS

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