NCLAT reserves order on Jaypee Infra land mortgaged with Jaiprakash's lenders

The National Company Law Appellate Tribunal (NCLAT) on Tuesday reserved its order over the issue of Jaypee Infratech's land mortgaged by Jaiprakash Associates Ltd (JAL) to its lenders.

A two-member NCLAT bench headed by Chairman Justice S J Mukhopadhaya also reserved its order over the plea of leading lenders to include them in the Committee of Creditors (CoC) of the Jaypee Infratech, which is presently going through insolvency resolution.

The appellate tribunal directed all the banks to file their written submissions by Friday over their claims.

"Heard the learned counsel appearing on behalf of the RP and other Respondents. Hearing concluded. Judgment reserved. Parties may file their short written submissions, not more than 3 pages, by July 12, 2019," said NCLAT.

The lenders include Axis Bank, Standard Chartered Bank, ICICI Bank that had challenged NCLT Allahabad order.

Banks have given loans to Jaiprakash Associates, JP Group's flagship firm against the land bank owned by Jaypee Infratech.

The NCLAT was hearing the appeal over the order of the Allahabad bench of the National Company Law Tribunal (NCLT), which had in May 2018 asked JAL to return nearly 760 acres of land to its subsidiary JaypeeInfratech, declaring the transfer of the land as "fraudulent" and "undervalued".

The NCLT had directed JAL to release and discharge interest created over the land to lenders including ICICI Bank.

However, on May 24, the NCLAT had stayed the order.