New Delhi: Jaiprakash Associates Ltd (JAL) on Monday told the Supreme Court that it is ready to deposit postdated cheques for ₹ 600 crore with the court’s registry and sell its cement plant at Rewa, Madhya Pradesh in order to settle its ongoing legal battle with homebuyers and creditors.
To give effect to the proposals, counsel for JAL Fali S Nariman sought a direction to the National Company Law Tribunal (NCLT), Allahabad, to begin the process for sanctioning a Scheme of Arrangement, after a restructuring plan was agreed by all 32 creditors of JAL.
JAL also sought a stay on initiation of liquidation proceedings against its debt-ridden subsidiary, Jaypee Infratech Ltd (JIL) as it was willing to deposit post-dated cheques to honour its proposal.
Earlier, the apex court had directed JAL to deposit ₹ 1,000 crore by 15 June to avert initiation of statutory proceedings against JIL after the corporate resolution period for JIL expired on 12 May. However, after JAL failed to deposit the amount, the court asked it to submit ₹ 650 crore to prove its bona fide.
JAL also proposed that homebuyers who have already sought refund of their monies be refunded their principal sum of ₹ 1,372 crore. Till date, JAL has deposited ₹ 750 crore with the Court pursuant to various orders.
The Supreme Court bench comprising Chief Justice Dipak Misra, justices A.M. Khanwilkar and D.Y. Chandrachud was hearing a batch of petitions.
The court was also informed that construction activity on its project sites did not halt in spite of the insolvency proceedings against JAL and that the company was expecting to accommodate approximately 500 of the remaining 21,532 homebuyers every single month starting from July.
JIL is among the 12 companies against whom the RBI, through its 13 June directive, has asked banks to file insolvency petitions.
The NCLT’s Allahabad bench admitted a plea moved by IDBI Bank seeking the initiation of a corporate insolvency resolution process against the real estate company in August 2017.