NCLT names resolution professional in Jaypee Infratech case
The NCLT has admitted the plea of IDBI Bank relating to default of Rs526 crore loan by Jaypee Infratech and appointed an interim resolution professional for it
New Delhi: The National Company Law Tribunal (NCLT) has admitted the plea of public lender IDBI Bank relating to default of Rs526 crore loan by Jaypee Infratech and appointed an interim resolution professional for it.
The Allahabad bench of NCLT has appointed Anuj Jain the interim resolution professional (IRP) to carry out the proceedings under the Insolvency and Bankruptcy Code.
“The interim resolution professional shall perform all his functions strictly which are contemplated, inter alia, by section 17, 18, 20 and 21 of the code,” said judicial member H.P. Chaturvedi in the order.
The NCLT directed that “all the personnel connected with the corporate debtor (Jaypyee Infratech), its promoter or any other person associated with the corporate debtor are under legal obligation to extend every assistance and cooperation to the IRP”.
The IRP “shall be under duty to protect and preserve the value of the property of the corporate debtor as part of its obligation imposed” on it, NCLT said.
As per the order, Jaypee Infratech, which is part of the debt-ridden Jaypee group, has defaulted on Rs526.11 crore loan outstanding to IDBI. Jaypee Infratech is into road construction and real estate business. It has constructed the Yamuna Expressway, connecting Delhi-Agra.
The NCLT bench has pronounced the operative portion only, saying “the order in detail is recorded separately”.
Earlier, the Jaypee group firm had filed objection against the admission of IDBI’s petition. However, on 4 August, it withdrew the same expressing its desire for an early approval of the resolution plan for the debtor.
In the memo filed before the tribunal, Jaypee Infratech said its no objection is given considering the “interest of all the stakeholders of the residents company, including home buyers and depositors”. “It is now an undisputed position in the matter that the financial creditor along with other lenders as well as the corporate debtor company are having consensus for early approval of the resolution,” said the NCLT.
The Jaypee group is selling its assets to reduce debt. UltraTech Cement in June closed the acquisition of cement plants of Jaiprakash Associates for Rs16,189 crore. Bankruptcy proceedings have also been initiated against other companies, including Bhushan Steel, Bhushan Steel and Power, Electrosteel Steels and Lanco Infratech, Alok Industries and Jyoti Structures, which are among the 12 non performing asset (NPA) or bad loan cases identified by the Reserve Bank of India.
The 12 accounts alone constitute a quarter of the over Rs8 trillion of NPAs. Of the total, Rs6 trillion are with public banks alone. The internal advisory committee (IAC) of the RBI, after its meeting on 13 June, had recommended 12 accounts representing about 25% of gross NPAs of the banking system for immediate reference under the IBC. These accounts have an exposure of more than Rs5,000 crore each, with 60% or more classified as bad loans by banks as of March 2016.