NCLT Delhi Approves Resolution Plan Of Suraksha Realty & Lakshdeep Investments & Finance For Jaypee Infratech LTD.

Background Facts

Jaypee Infratech Limited (“Corporate Debtor”) is an infrastructure development company which is engaged in the development and maintenance of the Yamuna Expressway, on a build-transfer-operate basis, as well as development of five integrated townships along the Expressway.

IDBI Bank Ltd. (“Financial Creditor”) filed an application under Section 7 of Insolvency & Bankruptcy Code, 2016 (“IBC”), seeking initiation of Corporate Insolvency Resolution Process (“CIRP”) against Corporate Debtor. The Adjudicating Authority vide an order dated 09.08.2017 admitted the Corporate Debtor into CIRP. Subsequently, a consortium comprising of M/s. Suraksha Realty Limited and M/s. Lakshdeep Investments and Finance Pvt. Ltd. (collectively “Successful Resolution Applicant”) submitted its Resolution Plan for the Corporate Debtor.

The Committee of Creditors approved the Plan with 98.66% votes and passed the Plan. Accordingly, the Interim Resolution Professional of Corporate Debtor filed an application before the Adjudicating Authority for approval of the Resolution Plan.

Financial Outlay Of The Plan

The total financial outlay of the Resolution Plan amounts to Rs. 20,363.36 Crores. The approved Resolution Plan proposes to pay the Secured Creditors an amount of Rs. 7762 Crores. The Unsecured Creditors are to be paid Rs. 12600.82 Crores. Yamuna Expressway Industrial Development Authority (YEIDA), which is an Operational Creditor, is to be paid Rs. 20 Lakhs as against an outstanding of Rs. 6,111.60/- Crores. The Income Tax Department will receive an amount of Rs. 0.10 Crores. While remaining Operational Creditors such as Workmen and Employees are to be paid NIL amount. The Public Shareholders are being paid Rs. 0.14 Crores.

Objections Raised By YEIDA

Yamuna Expressway Industrial Development Authority (YEIDA) raised the following objections to the Resolution Plan:

• Meagre provision of Rs. 10 Lakhs for payment to YEIDA towards the claim of External Development Charges, results in tinkering with the terms of the Concession Agreement.
• Meagre provision of Rs. 10 Lakhs in the Resolution Plan for payment to YEIDA towards the Additional Compensation of Rs 1689 Crores payable to the farmers violates the Supreme Court judgment in Jaypee Kensington Boulevard Apartments Welfare Association & Ors. Vs. NBCC (India) Ltd. & Ors., Civil Appeal No. 3395 of 2020;
• The Reliefs and Concession sought in the Resolution Plan tinkers with the terms of the Concession Agreement; and
• The Resolution Applicant cannot transfer and pass on beneficial interest in land parcels to the Assenting Financial Creditors.

The Bench dismissed the objections raised by YEIDA and upheld payment of Rs. 20 Lakhs towards External Development Charges (EDC) of YEIDA and towards Additional Compensation payable to farmers. It was further held that the transfer of beneficial interest to the Assenting Financial Creditors has been proposed in accordance with the terms of the Concession Agreement.

NCLT Verdict

The Bench approved the Resolution Plan submitted by Successful Resolution Applicant for the Corporate Debtor.

Case Title: IDBI Bank Limited v Jaypee Infratech Limited

Case No.: Company Petition No. (IB)-77(ALD)/2017

Counsel For the IRP: Adv. Sumant Batra, Adv. Ruchi Goyal, Adv. Sanjay Bhatt.

Counsel For the SRA: Sr. Adv. U.K. Chaudhary, Sr. Adv. Sudhir Makkar, Adv. Aditya Maheshwari, Adv. Eshna Kumar, Adv. Sagar Bansal, Adv. Mansumyer Singh, Adv. Suamya Gupta, Adv. Veera Matha.

Counsel For the CoC: Adv. Bishwajit Dubey, Adv. Namrata Sadhnani, Adv. Varisha Sharma.

Counsel For the Home Buyers: Adv. Shoeb Alam, Adv. Nakul Gandhi, Adv. Gauri Goburdhan.

Counsel For the FD Holders: Adv. Mohit Sharma.

Counsel For the ICICI Bank: Sr. Adv. Arun Kathpalia, Adv. Mahima Sareen, Adv. Nikhil Mathur, Adv. Misha.

Counsel For the YEIDA: Sr. Adv. Abhinav Vasisht, Adv. Amar Gopal, Adv. Aniket Aggarwal.

Counsel For the JAL: Sr. Adv. Krishnan Venugopal, Adv. Pallavi Srivastava, Adv. Krishnan Agarwal, Adv. Vishal Gupta, Adv. Divyanshu Gupta, Adv. Anupam Choudhary.

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