Jaypee Infratech insolvency: NCLAT says banks can vote against NBCC proposal

The National Company Law Appellate Tribunal Monday clarified that it has not barred lenders of Jaypee Infratech from voting against NBCC's proposal to acquire the debt-laden realty firm.

Hearing a batch of applications filed by banks seeking permission to vote against NBCC bid, the the National Company Law Appellate Tribunal (NCLAT) also directed Interim Resolution Professional (IRP) Anuj Jain to report the outcome of voting process directly to it.

On May 30, the Committee of Creditors (CoC) of Jaypee Infratech had decided to put on vote NBCC's bid even as bankers had reservations against the proposal, due to certain conditions and concessions put forward by the state-owned firm. The voting process started on May 31, and will conclude Monday (June 10).

As many as 13 banks and 23,000 homebuyers have voting rights in the CoC. Homebuyers represent nearly 60 per cent of voting rights, while banks have the rest.

Last week, lenders filed a petition before the NCLAT to allow them to vote against NBCC's bid in an ongoing insolvency process,
On this, NCLAT said: "We have not said do not vote against. We have said the CoC may not file final report on the decision, if it is rejected."
"In terms or earlier order May 17 and May 19, Resolution Professional instead of placing before the adjudicating authority (NCLT), must place matter before appellate tribunal for further orders."
"Today, it is premature but the voting must go on," NCLAT said, adding "it is not going to finish the company."