A two-member Principal bench of NCLT headed by President Ramalingam Sudhkar approved resolution plan, more than three months after concluding the hearing and reserving the order
The National Company Law Tribunal (NCLT) on Tuesday approved the Mumbai-based Suraksha group's bid to buy Jaypee Infratech Ltd, a development that comes as a relief for more than 20,000 homebuyers nearly six years after the debt-ridden company entered into the insolvency process.
The ruling, which also comes nearly two years after the Committee of Creditors (CoC) gave its nod for Suraksha group's offer, will pave the way for the completion of more than 20,000 housing units in various stalled projects of Jaypee Infratech Ltd (JIL) spread across Noida and Greater Noida in the national capital region.
A two-member Principal bench of NCLT headed by President Ramalingam Sudhkar on Tuesday approved the resolution plan, more than three months after concluding the hearing and reserving the order.
NCLT also directed that JIL will get Rs 542.62 crore out of Rs 750 crore deposited by Jaiprakash Associates Ltd (JAL) in the registry of Supreme Court, while Rs 106.9 crore will go to an escrow account of homebuyers. JAL, the flagship firm of Jaypee Group, will get only Rs 100.48 crore.
As per the order of the Supreme Court, JAL had in 2018 deposited a total of Rs 750 crore in several tranches before the registry of the apex court.
"We direct the Registrar NCLT through Registry of NCLT, Allahabad that out of the total amount of Rs 750 crores and accrued interest thereon, an amount of Rs 649.52 crore along with proportionate interest shall be paid to the JIL/Homebuyers of JIL and the remaining amount of Rs 100.48 crores along with proportionate interest shall be returned to JAL, on receipt of such request from the parties," NCLT said.
A monitoring committee will be set up by the applicant Interim Resolution Professional (IRP) and it will take all necessary steps for expeditious implementation of the resolution plan, the bench said.
The committee, to be constituted as per the resolution plan, will be set up in seven days.
The successful resolution applicant should deliver the units for possession by the homebuyers concerned as per the time frame promised in the resolution plan, the bench said.
"The monitoring committee would supervise and monitor the progress of the construction of units, related infrastructure development on a day-to-day basis and file report before this Adjudicating Authority (NCLT) on a monthly basis," it added.
On November 22 last year, NCLT had reserved its order over the plea filed by the IRP of Jaypee Infratech Ltd (JIL) seeking approval for Suraksha group's bid.
In June 2021, Suraksha group received the approval of the CoC, which includes banks and homebuyers, to takeover JIL.
JIL was among the first list of 12 companies against whom the Reserve Bank of India (RBI) had directed the banks to approach NCLT for initiation of insolvency proceedings.
Section 12 (1) of the Insolvency and Bankruptcy Code (IBC) mandates a CIRP to be completed within a time frame of 180 days from the date of admission of the application. Subject to certain conditions, CIRP can be extended and completed within 330 days, including any extension and the time taken in legal proceedings.
CIRP refers to the Corporate Insolvency Resolution Process.
However, JIL was an exceptional case that faced several rounds of litigation.
In the fourth round of the bidding process to find a buyer for JIL in 2021, Suraksha group had won the bid with 98.66 per cent votes. The company had got 0.12 per cent more votes than state-owned NBCC which was also in the fray.
As many as 12 banks and more than 20,000 homebuyers have voting rights in the CoC.
CIRP against JIL was started in August 2017 over an application by an IDBI Bank-led consortium.
In its final resolution plan, Suraksha group offered to bankers more than 2,500 acres of land and nearly Rs 1,300 crore by way of issuing non-convertible debentures.
It has also proposed to complete all pending flats over the next four years.
JIL's lenders have submitted a claim of Rs 9,783 crore.
In the first round of insolvency proceedings in 2018, the Rs 7,350 crore-bid of Lakshadweep, part of the Suraksha group, was rejected by the lenders.
The CoC had rejected the bids of Suraksha and NBCC in the second round held in May-June 2019.
In November 2019, the Supreme Court directed that the revised bids be invited only from NBCC and Suraksha.
Then, in December 2019, the CoC approved the resolution plan of NBCC with a 97.36 per cent vote in favour during the third round of the bidding process.
In March 2020, NBCC had got approval from the NCLT to acquire JIL.
However, the order was challenged before the NCLAT and later in the Supreme Court.
On March 21, 2021, the apex court ordered for a fresh round of bidding between the NBCC and the Suraksha group only.