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Jaypee Infra insolvency: NCLAT permits fresh bids, extends resolution period for 90 days


Press Trust of India New Delhi
The National Company Law Appellate Tribunal on Tuesday

allowed fresh bidding for the debt-laden Jaypee Infratech but barred promoter Jaypee Group from participating in the auction.
To enable the fresh bidding process, the NCLAT extended the resolution period of Jaypee Infratech for another 90 days, which includes a 45-day window for the resolution professional and lenders of the debt-ridden firm to invite fresh bids.
The NCLAT's direction came in view of lenders rejecting the resolution plan of state-owned NBCC and Suraksha Realty in the second round of bidding.
Jaypee Infratech went into insolvency in August 2017 after the National Company Law Tribunal (NCLT) admitted an application filed by an IDBI Bank-led consortium.
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 its hearing on Tuesday, a two-member NCLAT bench headed by Chairman Justice S J Mukhopadhaya said that as Corporate Insolvency Resolution Process (CIRP) was pending for a long time, it would give only 45 days to resolution professional (RP) and the Committee of Creditors (CoC) of the Jaypee Infratech to complete the process of inviting new bids.
It also granted another 45 days to the RP and the CoC to finish the entire process of selecting a final bidder.
"In view of aforesaid extraordinary situation, we are of the view that the period from 17th September 2018 i.e. the date of application filed by the Association of the allottees for clarification for the order and till the final decision i.e. 4th June 2019 can be excluded for the purpose of counting the 270 days," the NCLAT said.
However it also said that as the matter is pending since long, it was "not inclined to exclude the total period of 260 days and instead in the interest of the Allottees, we exclude 90 days for the purpose of counting the period of 270 days of Corporate Insolvency Resolution Process', which should be counted from the date of receipt of the copy of this order."

The said period is to enable the RP and the CoC to call for "fresh resolution plans' and to consider them" within a "period of 45 days," the NCLAT said.
The appellate tribunal further added: "Rest of the period of 45 days margin is given to remove any difficulty and appropriate order as may be passed by the Adjudicating Authority (NCLT)."

The appellate tribunal has also rejected the plea of Jaiprakash Associates Ltd, the promoters of Jaypee Infratech, to be eligible to submit a bid.
"No liberty is given to Jaiprakash Associates Ltd.', in view of the aforesaid observation and decision of Hon'ble Supreme Court in Chitra Sharma' (Supra)," it said.
The NCLAT had asked state-owned NBCC, whose bid was rejected by the CoC of Jaypee Infratech, to submit fresh resolution plan for the debt-ridden company.
"It is made clear that all the earlier resolution plan(s)' including the plan submitted by the NBCC, can not be considered, having been rejected by the CoC. However, it will be open to the NBCC' to file a fresh improved resolution plan," it said.
Meanwhile, the NCLAT also did not express any opinion over the bid to be filed by Adani Infra for Jaypee Infratech.
"It is informed that Adani Infra also proposed to file resolution plan' but we are not expressing any opinion with regard to the same," said NCLAT.
Lenders were requesting to exclude the 250 days from September 17, 2018, to June 4, 2019, from the stipulated period for Corporate Insolvency Resolution Process (CIRP), as this time was taken by the National Company Law Tribunal (NCLT) to decide on the voting rights of the homebuyers.

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First Published: Jul 30 2019 | 10:02 PM IST

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