NEW DELHI: The insolvency proceedings against real estate company
, which was initiated way back in 2017, is going to be further delayed with the
on Wednesday directing that fresh proposal be sought to take over the debt-ridden firm in which more than 20,000 homebuyers invested money and are waiting anxiously for resolution of the legal dispute.
The resolution plan submitted by
(India) Limited was approved by the Committee of Creditors in December 2019 by a vast majority of over 97% of voting share of the financial creditors and the
was all set to take over the company to complete the unfinished housing projects in NCR. But it was opposed by various parties, including some creditors, and the legal dispute finally reached the apex court which was the third round of litigation in the court on insolvency proceedings pertaining to Jaypee.
After holding extensive hearings and considering the pleas of all stakeholders, a bench of Justices A M Khanwilkar, Dinesh Maheshwari and Sanjiv Khanna directed the Interim Resolution Professional to complete the proceedings within 45 days.
"We direct the IRP to complete the CIRP within the extended time of 45 days from today. For this purpose, it will be open to the IRP to invite modified/fresh resolution plans only from
and NBCC respectively, giving them time to submit the same within 2 weeks from the date of this judgment. It is made clear that the IRP shall not entertain any expression of interest by any other person nor shall be required to issue any new information memorandum," said Justice Maheshwari who authored the judgement for the bench.
The court said the course which is being adopted is for the complex and peculiar features of this case but this repeat exercise concerning the CIRP of JIL cannot be an unending process and needs to be taken to its logical conclusion.
This court also took note of the fact that there was unanimity among all the parties that liquidation of JIL must be eschewed and an attempt be made to salvage the situation by finding out some viable arrangement which could subserve the interests of all concerned.
In its 375-page voluminous judgement, the apex court also ruled that there is no scope for the adjudicating authority to interfere with the commercial aspects of the decision of the CoC. "If, within its limited jurisdiction, the adjudicating authority finds any shortcoming in the resolution plan vis-à-vis the specified parameters, it would only send the resolution plan back to the Committee of Creditors, for re-submission after satisfying the parameters delineated by the Code and exposited by this court," the court said.
In a relief to Jaypee’s parent company,
, the bench quashed the company law tribunal order which held that Rs 750 crore deposited by it in the apex court would not be refunded and would go to the account of the insolvent company.
"We have also disapproved the decision of the Adjudicating Authority in relation to the
of INR 750 crore with accrued interest and have held that this amount is the property of JAL and the stipulations in the resolution plan concerning its usage by JIL or the resolution applicant cannot be approved. However, the final treatment of the said amount of INR 750 crore with accrued interest shall be determined by NCLT after the reconciliation of accounts between JAL and JIL," the bench said.