The National Company Law Appellate Tribunal (NCLAT) on Tuesday extended the resolution period of debt-ridden Jaypee Infratech by another 90 days, starting from receipt of the order. The lenders had sought a 260-day extension for the Corporate Insolvency Resolution Process (CIRP).
A two-judge Bench headed by SJ Mukhopadhaya, NCLAT Chairperson, scrapped all the previous bids for the firm.Fresh bids are to be filed now.
The appellate tribunal also pronounced that Jaiprakash Associates Ltd, the holding company of Jaypee Infratech, cannot participate in the fresh bids.
Mum on Adani bid
The Adani Group had also submitted a bid earlier. “NCLAT is not expressing its opinion on it (Adani bid),” said Mukhopadhaya.
In the previous hearing, NCLAT had asked Jaiprakash Associates to suggest an alternative solution as the company was neither in favour of extension of CIRP period nor wanted to go into liquidation. Under the current legal framework, the resolution process once started has to be completed within 270 days, failing which the company goes into liquidation.
Earlier, state-owned NBCC’s revised bid to acquire Jaypee had been rejected by the lenders, who had a vote share of 41 per cent. The homebuyers had a vote share of 59 per cent. Of that, 34.75 per cent voted in favour of the bid, 1.75 per cent against it, and the remaining homebuyers abstained from voting. The direction of voting was not enough to arrive at a conclusion per the rules.
Mumbai-based Suraksha Realty’s proposal to acquire Jaypee was also earlier rejected by the financial creditors.
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