IBC: NCLAT Orders Fresh Bidding For Jaypee Infratech
The promoters of Jaypee Infratech won’t be eligible to bid for the company, says NCLAT.
The National Company Law Appellate Tribunal ordered a fresh round of bids for debt-ridden Jaypee Infratech Ltd., giving thousands of homebuyers hope by again saving the company from going into liquidation.
The NCLAT extended for Jaypee Infratech the 270-day resolution period mandated under the Insolvency and Bankruptcy Code. The appellate tribunal deducted the 90-day litigation period, saying the extension has been granted in view of extraordinary circumstances.
The bench headed by Justice SJ Mukhopadhayay said the bidding process will be open to all the parties eligible to file resolution plans under the code.
The NCLAT said the promoters of Jaypee Infratech, which owes lenders Rs 9,800 crore and is yet to build and hand over 20,000 flats to homebuyers, won’t be eligible for bidding. Companies such as Suraksha Realty Ltd. and NBCC (India) Ltd. will now be eligible to file bids. NBCC will have to file a fresh bid since its earlier offer was rejected.
Jaypee Infratech was one of the 12 large corporate accounts shortlisted by the Reserve Bank of India in June 2017 for insolvency proceedings. But after no resolution plan was approved in the first 270-day deadline, the Supreme Court prevented liquidation by restarting the process in the interest of homebuyers, giving them 58 percent of the vote in the Committee of Creditors.