Supreme Court Orders Status Quo On Jaypee Infratech Insolvency Resolution
Supreme Court puts on hold for two weeks the Jaypee Infratech insolvency process as the IBC amendments await president’s assent.
The Supreme Court on Friday ordered status quo on the insolvency resolution process of Jaypee Infratech Ltd. for two weeks, saying that amendments to the Insolvency and Bankruptcy Code are awaiting the President’s assent.
An apex court bench, headed by Justice AM Khanwilkar, said the resolution plans that have been invited for Jaypee Infratech will have to be in sync with the changes being brought in by the IBC amendments.
That comes days after the National Company Law Appellate Tribunal ordered a fresh round of bids for the debt-ridden infrastructure firm, giving thousands of homebuyers hope by again saving the company from going into liquidation.
The NCLAT extended for Jaypee Infratech—which owes lenders Rs 9,800 crore and is yet to build and hand over 20,000 flats to homebuyers—the 270-day resolution period mandated under the IBC. The appellate tribunal deducted the 90-day litigation period, saying the extension has been granted in view of extraordinary circumstances.
A bench of the appellate tribunal, headed by Justice SJ Mukhopadhayay, had said the bidding process will be open to all parties eligible to file resolution plans under the code, while barring the promoters of Jaypee Infratech from filing bids.