Supreme Court has remanded the Jaypee Infra insolvency case back the creditors' group while saying that Rs 750 crore submitted by its parent company cannot be a part of the resolution process. Now, bidders are required to send the revised plans.
The Supreme Court on Wednesday remanded the Jaypee Infratech case back to the Committee of Creditors (CoC) while holding that Rs 750 crore deposited by Jaypee Infratech's parent company, Jaiprakash Associates, is not a part of the resolution plan. This amount cannot be used for construction by NBCC, it said.
The court has allowed its previous bidders -- NBCC and Suraksha Realty -- to submit a revised resolution plan.
The apex court has also given an additional period of 45 days to the creditors for the completion of the Corporate Insolvency Resolution Process (CIRP).
Earlier in March, the Allahabad bench of the National Company Law Tribunal (NCLT) had mandated that Rs 750 crore would be a part of the resolution plan.
The Rs 750-crore deposited by Jaiprakash Associates was a payment towards the obligation of the debt-ridden firm and should be treated as the asset of the corporate debtor, the NCLT had observed.
Jaypee Infratech is a landmark case under the Insolvency and Bankruptcy Code (IBC) and is the primary reason behind the amendment to the IBC that gave homebuyers the status of a financial creditor to protect their rights.
In the first round of insolvency proceedings, Suraksha Realty-Lakshadweep's Rs 7,350 crore bid was rejected by the lenders in 2018. In the second round conducted in May last year, the creditors' committee again rejected bids of NBCC and Suraksha Realty.
Jaypee Infratech has a debt of close to Rs 10,000 crore to an IDBI Bank-led consortium.
First Published: IST