While hearing an urgent petition during the extended lockdown period moved by the NBCC, the National Company Law Appellate Tribunal ('NCLAT') declined to stay the implementation of the modified resolution plan and directed the state - run NBCC to acquire the debt ridden Jaypee Infratech and complete over 20,000 pending flats, but said the direction was subject to its final order.
Justice Bansi Lal Bhat, acting Chairperson and Justice Anant Bijay Singh, Member (Judicial) also directed Jaypee Infratech's Interim Resolution Professional Anuj Jain ('IRP') to constitute an interim monitoring committee comprising of representatives from NBCC and its three main lenders, namely - IDBI Bank Ltd., the lead lender of the consortium, IIFCL and LIC for the 'Successful implementation of Resolution Plan'.
The honourable bench held:
"Meanwhile, till further orders, the approved 'Resolution Plan' may be implemented subject to outcome of this Appeal. The Interim Resolution Professional may constitute 'Interim Monitoring Committee' comprising of the 'Successful Resolution Applicant', i.e., the Appellant and the three major Institutional Financial Creditors, who were Members of the 'Committee of Creditors' as named above."
During the proceedings, counsel for IRP stated that he intended to file an appeal with regard to some observations made in paragraph 103 of the impugned order.
NCLAT issued notices to ICICI Bank Ltd., the dissenting creditor who is entitled to cash payment pursuant to the modification; IDBI Bank and IRP directing them to file their replies and rejoinders, if any.
The matter is listed for 'admission after notice' on May 15th.
NBCC had filed an appeal against the order of NCLT challenging the modification to its bid for Jaypee Infratech. NCLT had approved NBCC's offer on March 3 but had allowed the objections by the dissenting creditors ICICI Bank and Yamuna Expressway Industrial Development Authority and directed payment to unclaimed fixed deposit holders. NBCC contended that NCLT had exceeded its jurisdiction in making such modifications by ordering direction to pay ICICI Bank an amount equivalent to what it would have received in the event of liquidation, along with interest, in 12 installments.
NBCC (India) provides civil engineering construction services. The firm operates through three segments: Project Management Consultancy (PMC), Real Estate Development & Engineering, Procurement and Construction (EPC).
In December 2019, a committee of creditors comprising 13 banks and around 21,000 homebuyers had approved the resolution plan of NBCC with 97.36 per cent vote in favour.
Jaypee Infratech went into insolvency process in August 2017 after the NCLT admitted an application by an IDBI Bank-led consortium.
Advocates representing NBCC- Mr. Prateek Kumar, Mr. Siddharth Srivastava and Mr. Mohit Kishore, Advocates representing ICICI bank Ltd. - Ms. Misha and Ms. Mahima Sareen, Advocate for IRP- Mr. Sumant Batra, Advocate for IDBI Bank - Mr. Bishwajit Dubey, Company Appeal (AT) (Insolvency) No. 475 of 2020
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