The Supreme Court had in August transferred to itself all the appeals pending before the NCLAT to ensure that there is no further delay in execution of the approved resolution plan of state-owned NBCC, and 20,000 homebuyers get possession of their stalled flats.
The wait for Jaypee Infratech (JIL) for the resolution and completion of its stalled projects may get longer. The Supreme Court on Thursday said the Rs 750 crore deposited by JIL’s parent firm, Jaiprakash Associates (JAL), pursuant to the apex court’s May 2018 order cannot be part of the NBCC resolution plan, and the state-owned construction firm cannot use it for construction of stalled residential projects.
While JIL’s promoter group has sought back the Rs 750 crore, which was transferred from the SC registry to the National Company Law Tribunal (NCLT), NBCC has been opposing it on the grounds that the amount was an integral part of its resolution plan for acquisition and completion of JIL’s projects.
NBCC vehemently opposed the transfer of money to JAL, saying it cannot be forced to execute the project in this situation. However, a bench led by Justice AM Khanwilkar, while reserving its judgment on a huge batch of appeals and petitions, said the money belongs to JAL and it would restrain NBCC from withdrawing from the project in case the money is given back to the parent company. However, some part of the deposit (around `200 crore plus interest) will be adjusted with JIL (corporate debtor), it said.
Both the bidders, NBCC and Mumbai-based Suraksha Realty, had included the Rs 750 crore in their resolution plans.
The Supreme Court had in August transferred to itself all the appeals pending before the NCLAT to ensure that there is no further delay in execution of the approved resolution plan of state-owned NBCC, and 20,000 homebuyers get possession of their stalled flats.
However, homebuyers are hopeful that the Supreme Court will uphold the resolution plan and direct the NBCC to implement the resolution plan. “We hope the NBCC’s RP will go through and the court can retain NBCC, which can complete the residential flats,” lawyers added.
While NBCC had offered land and road assets to lenders under a land-debt swap deal, the NCLT, while approving its resolution plan, had made “unilateral” and “arbitrary modifications” by allowing objections of dissenting creditor ICICI Bank and Yamuna Expressway Industrial Development Authority even as the plan was approved by a majority of 97.36% vote in the Committee of Creditors.
An IDBI Bank-led consortium had initiated insolvency proceedings against JIL for failing to repay total debt of around Rs 24,000 crore.
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