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NCLAT agrees to hear IL&FS auditors appealing against govt charges

Interim order of NCLT staying impleadment of auditors to continue till August 19, says NCLAT.

Aashish Aryan  |  New Delhi 


The National Company Law Appellate Tribunal (NCLAT) on Tuesday extended the Corporate Insolvency Resolution Process (CIRP) period of Jaypee Infratech for 90 days, during which fresh bids can be submitted. Of these 90 days, the initial 45 days have been granted for finalisation of new bids while the next 45 days have been kept additionally to cure any discrepancies in the bids chosen by the Resolution Professional (RP).

A two-judge Bench, led by Chairperson Justice S J Mukhopadhaya, said all old bids, including that of NBCC India, would stand invalid. The new bidders, including Adani Infrastructure and Development and NBCC, if they choose to submit fresh plans, will be free to do so in accordance with the law. Jaypee Associates, the parent company of Jaypee Infratech, however, would be ineligible to submit fresh bids, the two-judge Bench said.

The lenders to Jaypee Infratech had approached the seeking to exclude the 260-day period, starting September 17, 2018, from the CIRP as this was the time taken by National Company Law Tribunal (NCLT) to decide on the voting rights of homebuyers. Following an application moved by the homebuyers, a two-member Bench of the NCLT had given split opinion on whether homebuyers in the Jaypee Infratech case should be considered a part of the Committee of Creditors (CoC) and whether they should be construed as one or a be segmented class-wise, for computation of voting share.

The application, initially moved in September 2018, was finally decided when a reference Bench agreed with one of the members' findings via an order on June 4.

Jaypee was taken to the NCLT by an IDBI Bank-led consortium for failing to repay debt worth Rs 24,000 crore. In the first round of insolvency proceedings conducted last year, the Rs 7,350-crore bid of Lakshdeep, part of Suraksha Group, was rejected by lenders. In October 2018, the RP started a second round of bidding to revive Jaypee.

Though state-owned NBCC had submitted a bid to complete the pending projects of Jaypee Infratech, the plan was rejected by the lenders to the company. Of the total votes polled on NBCC's plan, 34.75 per cent of homebuyers had voted in favour while 1.44 per cent had voted against. As much as 23.8 per cent of the homebuyers had abstained from the voting process, the resolution professional told the The homebuyers comprise 59 per cent of the CoC of Jaypee.

The 13 banks comprising the other 40.75 per cent of the CoC had voted against the NBCC's bid, the resolution professional had told the Voting on NBCC's bid for Jaypee had started on May 31 and ended on June 10.

First Published: Tue, July 30 2019. 19:58 IST