The Supreme Court on Wednesday directed that the bankruptcy resolution of Noida-based property developer Jaypee Infratech Ltd (JIL) should be completed within 90 days and barred parent Jaypee Associates Ltd from its bidding.
The order by the division bench of Justices A.M. Khanwilkar and Dinesh Maheshwari comes as a big relief for buyers of more than 20,000 flats that are yet to built and is a setback for the Jaypee group.
The bench passed the order on a plea by Jaypee Group against a National Company Law Appellate Tribunal (NCLAT) order on 30 July barring it from participating in the auction of JIL.
“We direct the interim resolution professional (IRP) to complete the corporate insolvency resolution process within 90 days from today," the top court’s bench said.
“In the first 45 days, it will be open to the IRP to invite revised resolution plans only from Suraksha Realty and NBCC, which were final bidders and had submitted resolution plans on an earlier occasion and place the revised plans before the committee of creditors, if so required, after negotiations and submit a report to the adjudicating authority, the National Company Law Tribunal (NCLT) within such time.," it said.
“In the second phase of 45 days commencing from 21 December 2019, margin is provided for removing any difficulty and to pass appropriate orders thereon by the adjudicating authority," the top court said.
The division bench said the pendency of any other application before the NCLT or NCLAT, including any interim direction given shall not be an impediment for the IRP to receive and process the revised resolution plan from NBCC and Suraksha Realty and take it to its logical end in line with the provisions of the Insolvency and Bankruptcy Code within the extended timeline of 90 days.
The top court also said that the directions in this order are passed as an “exceptional situation" with respect to the present case only, meaning that it would not act as a precedent for other cases. On 30 July this year, NCLAT had allowed fresh bidding for the cash-strapped JIL, but had barred its promoter Jaypee Group from participating in the auction.