Real Estate

‘Jaypee’s homebuyers, banks should be treated on par in lenders’ panel’

Garima Singh New Delhi | Updated on June 06, 2019 Published on June 06, 2019

Homebuyers and lenders of Jaypee Infratech should be treated as one in the Committee of Creditors (CoC), and there should be no class-wise segmentation, a Reference Bench of the National Company Law Tribunal (NCLT), New Delhi, has said.

“The CoC, taking into consideration Section 21(2) of the Insolvency and Bankruptcy Code (IBC), 2016, shall comprise all the financial creditors and must be construed as one and cannot be segmented class-wise, particularly for the purpose of computation of voting share,” read the order.

The NCLT also concluded that the voting shares, as prescribed and required to be achieved under the respective provisions of the IBC, are “mandatory”, and cannot be held to be “directory”.

It may be recalled that an earlier order by NCLT-Allahabad had raised a question on whether the threshold voting shares fixed for the decision of the CoC under various sections of the IBC need to be followed “literally” or “they are only directory”. The query had been sent to the Reference Bench of the NCLT.

Two judges of the Allahabad Bench had given different views on the issue.

The decision will be placed before the President of the NCLT and then forwarded to the Division Bench in Allahabad.

Voting on NBCC bid

Meanwhile, the voting on NBCC’s bid for Jaypee Infatrech is going on, and the CoC has been given 10 days starting from May 31.

Under the NBCC bid, the value of unsold inventory offered to lenders has been reduced to ₹1,300 crore from the earlier ₹1,700 crore.

NBCC’s proposal was put to vote earlier in May, but bankers opposed the bid, citing a few conditions put out in the resolution plan submitted by the company.

There are 13 banks and 23,000 home-buyers with voting rights in the CoC.

If it wins the bid, NBCC plans to infuse an equity capital of ₹200 crore and complete the construction of over 20,000 flats by July 2023.

The Adani Group has also submitted a bid to acquire Jaypee Infratech.

Published on June 06, 2019
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